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NRG Energy Wins Conditional Award to Build Clean Coal Plant in New York.

ENERGY RESOURCE-20 December 2006-NRG Energy Wins Conditional Award to Build Clean Coal Plant in New York(C)2006 JeraOne -

NRG Energy Inc. has received a conditional award of a contract from the New York Power Authority to build a 680-net megawatt Integrated Gasification Combined Cycle plant at its Huntley facility in Tonawanda, N.Y., it was announced yesterday.

The project, which represents a total project cost of approximately $1.5 billion, is scheduled to go into commercial operation in 2013. Unlike other "clean coal" technologies, NRG said the plant can be designed to capture and sequester carbon "from the first day of operation."

Integrated Gasification Combined Cycle (IGCC) is a process that involves converting coal to a synthetic gas, removing the pollutants--sulfur dioxide, nitrogen oxide and mercury--as well as potentially carbon dioxide (CO2), from the synthetic gas before combustion. The cleaned synthetic gas is then used in a combined cycle gas plant in order to generate electricity.

The NRG IGCC plant will have the ability to capture up to 65 percent of the carbon dioxide produced. The emissions profile of an IGCC plant, which uses abundant, affordable and domestically available coal, is similar to that of a natural-gas fueled plant.

The award is "conditional" in that the cost of the technology is above current market pricing for new coal plants using more traditional technology that doesn't have the option to capture and sequester carbon, said NRG. NRG said the company and NYPA are establishing "a strategic alliance to pursue tax credits or other federal and/or state funding sources to bridge this economic gap."

"New York should be commended for exercising great courage and leadership in tackling head on the country's single biggest issue, global warming, while embracing coal--our most affordable, abundant domestic fuel source," said David Crane, NRG president and chief executive officer. "While we realize this is only the beginning of a long road to implementation, we are gratified to be part of such an important milestone and we look forward to working with New York to begin construction of this important technology by 2008.

"Our public-private partnership with NYPA is essential to making this groundbreaking project a reality," said Crane. "Additional funding is necessary to offset the higher cost for this new plant and transform our current facility to supply power for the next generation, bringing significant environmental and economic benefits to the region."

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Publication:Energy Resource
Date:Dec 20, 2006
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