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Friday, January 18, 2008

Environment - "Coal is no longer on front burner" in many states

"Coal is no longer on front burner: The rush to build power plants slows as worries grow over global warming, building costs and transportation" is the headline to a lengthy front-page story today by Judy Pasternak in the LA Times. A few quotes:

WASHINGTON -- America's headlong rush to tap its enormous coal reserves for electricity has slowed abruptly, with more than 50 proposed coal-fired power plants in 20 states canceled or delayed in 2007 because of concerns about climate change, construction costs and transportation problems.

Coal, touted as cheap and plentiful, has been a cornerstone of President Bush's plans to meet America's energy needs with dozens of new power plants. Burned in about 600 facilities, coal produces more than half of the nation's electricity.

But urgent questions are emerging about a fuel once thought to be the most reliable of all. Utilities are confronting rising costs and a lack of transportation routes from coal fields to generators, opposition from state regulators and environmental groups, and uncertainty over climate-change policies in Washington.

"Coal projects need more regulatory certainty before any new ones are going to get built in the near future," said David Eskelsen, a spokesman for PacifiCorp, which serves more than 1.6 million customers in six Western states. "The current situation does make utility planning very challenging." * * *

This fall, regulators in Kansas and Washington state denied applications for coal plant permits because of concerns about carbon dioxide emissions.

After Republican Florida Gov. Charlie Crist said in October that he wasn't a "fan" of coal, utilities postponed plans to build coal plants in Tampa and Orlando.

Xcel Energy has told Colorado officials that it plans to close two coal plants and add 1,000 megawatts of wind and solar power, in addition to a new natural-gas plant. The company wants to cut its carbon dioxide emissions 10% by 2015.

In Nevada, Sierra Pacific Resources delayed construction of a coal plant and moved up the schedule for a natural-gas-powered plant instead.

The Tennessee Valley Authority decided in August to add a $2.5-billion unit to a nuclear power plant rather than construct a new coal facility -- the other main option -- because of the uncertain economics.

Altogether, 53 coal-fired plants were canceled or delayed in 2007, according to Global Energy Decisions, a private consulting firm that tracks power plants for the Department of Energy.

In the near term, coal clearly will remain a part of the American energy picture. Even as the postponements and terminations pile up, plans for new coal-fired power plants continue to advance in New Mexico, Mississippi and Indiana.

Although TXU Energy canceled eight coal-fired power plants it had proposed in Texas, the utility is going ahead with three others.

Last month, an energy industry consortium announced plans to build a government-subsidized power plant in southern Illinois to demonstrate low-emissions coal technology. But the ballooning cost of the FutureGen plant -- now projected to be about $1.8 billion, nearly double its original estimated price tag -- has drawn criticism from the Department of Energy, which could delay or kill the project by withholding funds. * * *

A recent study by the industry-funded Electric Power Research Institute projects that coal power will cost more than nuclear power or natural gas by 2030 if coal's carbon dioxide problem is solved the way most experts envision. Still unproven, that method involves separating carbon dioxide from the gas stream before it heads out of the stacks, collecting the vapors and then storing them underground. That would also require a new network of pipelines to move carbon dioxide from the power plant to a geologically sound site. * * *

In the coal fields of southern Illinois and Indiana, a mining renaissance is hoped for -- but no north-south rail line connects them with Chicago and the Great Lakes.

Purdue University recommends building a 300-mile "Indiana coal corridor" -- at a cost of about $1 million a mile.

See this Nov. 20, 2007 ILB entry headed "Indiana Utility Regulatory Commission Gives Duke Energy Indiana Approval to Build Integrated Gasification Combined Cycle Plant."

The Washington Post has a story today headed "Coal Industry Plugs Into the Campaign," that begins:

A group backed by the coal industry and its utility allies is waging a $35 million campaign in primary and caucus states to rally public support for coal-fired electricity and to fuel opposition to legislation that Congress is crafting to slow climate change.

The group, called Americans for Balanced Energy Choices, has spent $1.3 million on billboard, newspaper, television and radio ads in Iowa, Nevada and South Carolina.

Posted by Marcia Oddi on January 18, 2008 07:49 AM
Posted to Environment