Duke Vitality Indiana Files Cost Update For Clean Coal Gasification Power Plant
Duke Power Indiana on April sixteen filed testimony and exhibits with the Indiana Utility Regulatory Commission increasing the cost estimate for its Edwardsport coal gasification plant below construction in southwest Indiana.
The venture’s scale and complexity has added roughly $530 million to the previously authorised $2.35 billion price.
Indiana state utility regulators should evaluate and approve Duke Vitality Indiana’s filing earlier than any new prices can be phased into buyer electric rates.
Final November, Duke Vitality Indiana alerted the fee that it was seeing vital upward strain on prices as the challenge’s engineering progressed. The company requested the IURC to schedule a proceeding to review a revised price estimate.
The April 16 filing estimates the overall cost of the Edwardsport IGCC mission to be $2.88 billion, together with venture financing prices. The total project, factoring in features reminiscent of engineering, development and purchasing, is 57 percent full. It’s scheduled to be working in 2012.
“This is the first time a plant this size utilizing this superior clean coal expertise has been built anyplace on the planet,” mentioned James Turner, president and chief working isomerisation in petroleum industry officer of Duke Energy’s Franchised Electric & Gas businesses. “We labored with GE, Bechtel and other design firms to perform an engineering research early on; nonetheless, as engineering progressed, the undertaking’s design and complexity expanded significantly. Sadly, this evolution in scope and complexity makes a rise in the cost estimate inconceivable to avoid,” Turner added.
If authorized, the increase in costs will add about 3 percent to the challenge’s customer charge influence. Based mostly on a buyer’s invoice right now, the project will end in an total average 19 p.c charge improve phased into charges by 2013.
Regulators granted the corporate permission in 2007 to assemble the technologically superior clean coal energy plant in Edwardsport, Ind. Regulators additionally accepted the phase in of charge will increase associated with the venture. The ability to section in costs over time reduces the customer invoice influence because it spreads out the rise and lowers financing costs. State utility regulators evaluation and approve all plant prices earlier than they are added to buyer electric charges.
The approximately 618-megawatt plant will use advanced built-in gasification mixed cycle expertise. It’ll:
– Produce 10 occasions as a lot energy as the present plant at Edwardsport, but with significantly less environmental influence than the a lot smaller plant it isomerisation in petroleum industry replaces.
– Be the first main new energy plant inbuilt Indiana in greater than 20 years. The plant is essential to modernizing the state’s aging electric system.
– Generate marketable by-products. This plant produces sulfur and slag for agricultural and development supplies.
– Use dramatically much less water. The IGCC plant will need less than one-tenth the quantity of water per day compared to the current plant when it is working.
“We’re demonstrating that we will generate electricity using coal in a more environmentally sustainable way,” Turner said. “Some would like to turn away from coal utterly. That’s not life like provided that it powers most of Indiana’s — and half of our nation’s — vitality needs. Indiana has more than 110 years of recoverable coal reserves. We merely can not turn our back on this abundant, comparatively low-price gas resource.”
The company will retire the present 160-megawatt plant – with coal and oil models greater than 60 years previous – along side the completion of the brand new facility.
About 1,400 construction employees and different professionals are working on site. That quantity is anticipated to develop to about 2,000 this summer season. The plant will make use of roughly 110 to one hundred twenty full-time staff. In addition, the 1.7 million to 1.9 million tons of coal the plant will use annually will support an estimated 170 mining jobs.
“The plant is certainly one of the most important construction initiatives that has ever been undertaken in Indiana,” Turner said. “To this point, the construction has generated greater than $400 million in contracts with Indiana companies. The investment and jobs are a welcome boost in a down financial system.”
The IGCC plant will use state-of-the-art know-how to gasify coal, strip out pollutants, after which burn that cleaner gas to provide electricity. The plant’s efficiency reduces the plant’s carbon emissions per megawatt-hour by practically half.
Duke Vitality Indiana’s operations provide approximately 6,800 megawatts of electricity capacity to approximately 780,000 clients, making it the state’s largest electric provider.
Duke Vitality is one in all the most important electric energy holding firms within the United States. Its regulated utility operations serve roughly 4 million customers situated in 5 states in the Southeast and Midwest, representing a inhabitants of roughly 11 million individuals. Its industrial power and international enterprise segments own and function numerous power era assets in North America and Latin America, including a growing portfolio of renewable power property within the United States.