PSNH launches clean air initiative at Bow plant.

MANCHESTER, N.H.--(BUSINESS WIRE)--Nov. 29, 1994--Public Service of New Hampshire (PSNH) will pioneer the use of new "clean coal" technology at its coal-fired Merrimack Station power plant in Bow next year, enabling the plant to reduce smog-causing nitrogen oxide (NOx) emissions at the station by two-thirds.

The cornerstone of the PSNH plan involves retrofitting Merrimack Station's 320-megawatt Unit 2 with an emissions-cleansing Selective Catalytic Reduction (SCR) system. The SCR system treats nitrogen oxides before they leave the plant, converting them into non-polluting, natural elements. PSNH officials indicate that once installation is complete in May 1995, Merrimack Station will be the first coal-fired utility-owned boiler in the United States to employ SCR technology.

"Today we all take a bold step toward a better future," said PSNH president and chief operating officer William T. Frain, Jr. "Our initiative at Merrimack Station represents an historic first for Public Service of New Hampshire and the electric power industry as a whole. But more importantly, it once again demonstrates PSNH's unyielding commitment to protect New Hampshire's environment, and preserve a low-cost power source."

Last March PSNH, the state and a diverse coalition of business, health and environmental groups, agreed on a plan to reduce NOx emissions at three PSNH fossil fuel-fired plants overall by 50 percent to help the state of New Hampshire comply with key requirements of the federal Clean Air Act. At a Merrimack Station news conference attended by many of the coalition members, Frain called the SCR system at Unit 2 part of a bold but necessary utility strategy.

"At Unit 2 alone, the clean coal technology will result in the removal of more than 66 tons of NOx emissions from New Hampshire's air every day," Frain says. "That is the largest single-source NOx reduction in all of New England.

"Public Service of New Hampshire recognizes our unique responsibilities in this state. This trailblazing technology presents a superior solution, allowing us to meet our clean air goals without reducing production of Merrimack Station's low-cost electricity."

The investment in this NOx-reducing technology at Merrimack Station represents about a $22 million capital cost and about a $2.2 million annual operating expense. PSNH will work aggressively to mitigate the impact this expenditure could have on rates.

"We are keenly aware of our competitive business environment," said Frain. "We are committed to making this Clean Air investment and doing everything possible to remain within the paramaters of the rate agreement and to hold rates steady after 1997."

NOx is produced by the combustion of fossil fuels, and is a factor in the formation of ground-level ozone, or smog. In New Hampshire, motor vehicles are responsible for about 54 percent of the state's total NOx emissions; utility power plants and large industries produce 35 percent; and homes and small businesses create the remaining 11 percent.

The Selective Catalytic Reduction system at Merrimack Station Unit 2 involves installing a catalytic converter to the unit's boiler. Within the flue system, flue gas containing NOx is sprayed with ammonia upstream from the catalyst. When it reaches the catalyst, the NOx reacts with the ammonia and converts into non-polluting nitrogen and water vapor, which are later released.

The SCR technology will be installed by Noell Inc., an international engineering firm headquartered in Germany which specializes in advanced pollution control technology. Used widely in Germany, SCR systems have only recently appeared in a handful of North American power plants. The PSNH application marks the first time an American utility has used SCR to achieve NOx reduction at a commercial coal-fired facility.

In addition, Merrimack Station Unit 1 will use a Selective Non-Catalytic Reduction (SNCR) system to reduce its emissions by 30 percent. The de-NOx process at Unit 1 will also use an ammonia spray, although the smaller 120-megawatt facility will not require a catalytic converter.

PSNH is also taking actions to reduce emissions at its Newington Station in Newington and Schiller Station in Portsmouth. The federal Clean Air Act Amendments of 1990 mandate the state to require stationary sources emitting more than 50 tons of NOx per year to use currently available emissions controls, known as Reasonably Available Control Technology (RACT). These modifications must be in place by May 31, 1995. The steps planned by PSNH will account for about 80 percent of New Hampshire's overall NOx emission reductions.

PSNH's de-NOx plan is the result of an extensive collaborative effort involving PSNH, the Audubon Society of New Hampshire, the American Lung Association of New Hampshire, the Appalachian Mountain Club, the Business & Industry Association of New Hampshire, the Conservation Law Foundation, the New Hampshire Attorney General's Office, the New Hampshire Department of Environmental Services, the New Hampshire Division of Air Resources, and the U.S. Environmental Protection Agency.

PSNH is New Hampshire's largest electric utility, serving almost 400,000 homes and businesses throughout the state. It is a wholly owned subsidiary of Northeast Utilities of Berlin, Conn., New England's largest electric utility.

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Stats At A Glance: o Current Sources of NOx in New Hampshire

o motor vehicles - 54 percent

o utility power plants and large industry - 35 percent

o homes and small businesses - 11 percent

o NOx-reducing steps at Merrimack Station will result in a 65 percent reduction of NOx emissions from Unit 2 and a 30 percent reduction from Unit 1.

o NOx-reducing steps at PSNH's three fossil-fueled stations will cut companywide emissions by 50 percent.

o PSNH's NOx-reducing efforts will account for 80 percent of New Hampshire's overall NOx emission reductions.

CONTACT: Public Service of New Hampshire

Mary-Jo Boisvert, 603/634-3297