The New York-based hedge fund aiming to take over New Mexico’s San Juan Generating Station (SJGS), focused for closure by state lawmakers, desires to refit the 46-year-old, coal-fired plant to make use of carbon seize and sequestration (CCS) expertise.
Acme Equities LLC stated final week that retrofitting the 847-MW plant with CCS expertise would lower carbon emissions by 90% and provide the plant one other income stream—promoting the captured CO2 to assist produce oil. Acme is negotiating with native Farmington, N.M., officers to take over the San Juan plant, a significant employer within the space, and hold it working.
Injecting carbon dioxide into older oil fields has been accomplished for years to encourage wells to proceed producing oil.
But state lawmakers expressed doubts concerning the expertise at the same time as they pushed a invoice (Senate Bill 489) that might shut the plant by 2022, restrict the monetary hit to the plant’s present possession, and protect tax income for native colleges.
Lawmakers questioned concerning the financial viability of the CCS expertise throughout discussions March 2 with the state’s Senate Corporations and Transportation Committee.
The state Supreme Court, in the meantime, on March 1 granted a request from Public Service Co. of New Mexico (PNM), the state’s largest electrical supplier, to delay regulatory proceedings associated to the closure of the SJGS. PNM now has till March eight to submit a plan that features particulars on prices, results, and plans related to the San Juan shutdown.
Acme Equities, a personal, New York-based actual property funding firm that focuses on North American power tasks, reached an settlement February 23 with officers in Farmington to maintain the SJGS open past 2022. The metropolis is part-owner of the plant. The facility’s different homeowners— together with Tucson Electric Power, Los Alamos County, and Utah Associated Municipal Power Systems, together with majority proprietor Public Service Company of New Mexico (PNM)—have stated they don’t plan to obtain energy from the SJGS after 2022.
Farmington officers have labored to discover a new operator for the plant after PNM in 2017 stated it might shut the plant’s two remaining items in 2022, 30 years forward of schedule. Two items on the plant had been retired in 2017. A plant truth sheet exhibits PNM owns 46% of the SJGS. Several California-owned utilities previously owned a number of the plant’s era, however they ended their possession agreements in 2017 after 2015 laws in California required them to divest from coal-fired era.
Doubts About CCS Technology
Nathan Small, a Democrat from Las Cruces and a co-sponsor of SB 489, advised the committee that, “Carbon seize has failed extra usually than it’s succeeded.” The U.S. Energy Information Administration has stated there are simply two North American crops utilizing the expertise proposed for the Farmington plant: the Petra Nova plant in Texas (POWER’s Plant of the Year in 2017), and Boundary Dam in Saskatchewan, Canada (the Plant of the Year winner in 2015), close to the North Dakota border.
Another carbon seize venture was designed in Kemper County, Mississippi, but it surely was scuttled earlier than coming on-line. The coal gasification venture from Mississippi Power was purported to be a approach to burn coal extra cleanly, whereas the plant captured carbon dioxide. Mississippi Power by no means was capable of get the expertise to work reliably. The 582-MW Kemper County power facility was designed as an built-in gasification mixed cycle (IGCC) plant, which might convert regionally mined lignite to synthesis gasoline, utilizing novel TRIG expertise to seize as much as 65% of its carbon emissions. Several technical hurdles regularly delayed the venture; it initially was scheduled to be positioned into service in May 2014. The venture’s prices steadily rose, topping $7.5 billion when factoring in mine, carbon dioxide pipeline, and different accounting prices.