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Released October 09, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The value of natural gas as a provider of baseload power is becoming increasingly important and apparent as the U.S. shifts away from coal-fired power and increases renewable energy generation. The fuel's importance is particularly noticeable during the summer months. The U.S. Energy Information Administration's (EIA) Hourly Electric Grid Monitor shows that the U.S. set a record for natural gas-fired power generation on August 2, 2024, when the U.S. generated 7.1 million megawatt-hours, 6.8% more than the existing summer record for natural gas, which had been set the year before.
Noting that overall U.S. electricity generation was up 3% in June through August this year versus the same period of 2023, the EIA goes on to state that nine of the 10 days with the most natural gas-fired generation on record occurred this past summer, with six of those days occurring in August. Natural gas represented on average for the summer about 45% of the total U.S. fuel mix used for power generation, up from 29% a decade earlier.
Part of the reason utilities are turning to natural gas-fired generation is its ability to provide steady baseload power with less emissions than coal. While baseload coal-fired plants have been closing, renewables have been gaining ground in the U.S., but they suffer from the intermittent generating nature. Wind turbines only produce power when wind is available; solar plants generate power only when the sun is shining (although battery storage is going some way to solve this problem). When utilities need a reliable, steady source of reliable baseload power, natural gas now seems to be the go-to fuel.
And this doesn't seem set to change, even as more renewable energy plants crop up each month. Industrial Info is tracking more than 75 capital projects worth $12.7 billion in the U.S. involving natural gas-fired generation that are set to kick over the next 12 months. While not all of these will be built as planned, the high numbers demonstrate that natural gas will continue to play an important role in U.S. power generation.
The overwhelming majority of projects call for combined-cycle units, and many of these units are being added to existing plants. Examples of these additions include Louisville Gas & Electric Company and Kentucky Utilities Company's (both Louisville, Kentucky) addition of a 621-megawatt (MW) single-shaft combined-cycle unit at the Mill Creek Power Station in Louisville. Construction of the unit is expected to begin in the first half of next year. The equipment will be able to burn up to 50% hydrogen when the cleaner-burning fuel becomes more readily available and economical. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more by viewing the project report.
Another gas-fired unit addition is set to take place at NRG Energy Incorporated's (NYSE:NRG) (Houston, Texas) Cedar Bayou Power Station in Baytown, Texas. The Mitsubishi turbine-generator set will provide nearly 700 MW of power when completed in early 2028. Engineering, procurement and construction firm Burns & McDonnell (Kansas City, Missouri) is expected to break ground on the unit early next year. Subscribers can click here to learn more about the project, including contact details for key decision makers.
Some of the largest projects planned to break ground in the upcoming year are expected to add more than 1 gigawatt of gas-fired generation and have investment values of more than $1 billion. Examples include Competitive Power Ventures Incorporated's planned CPV Basin Ranch Energy Center in Ward County, Texas, about 90 miles southwest of Midland, near areas of intense Permian Basin oil and gas production. The facility would use two single-shaft combined-cycle units to produce 1,200 MW of power. Construction on the plant is expected to begin in the second half of next year and take about three years to complete. Subscribers can learn more by viewing the project report.
Another project will take advantage of the infrastructure of a former coal-fired plant and go in as a brownfield combined-cycle installation in St. Louis, Missouri. Ameren Corporation (NYSE:AEE) (St. Louis) plans to construct the Castle Bluff Energy Center at the former Meramec coal-fired plant, which shut down in 2022. The new plant will have four 200-MW combined cycle units to provide 800 MW of total generation. The facility will not be used to provide baseload power, but rather as a peaking station to provide power in times when demand nears the capacity of existing power sources. Jeff Moore, Ameren's director of combustion turbine-generators, said the project is a necessary element in Ameren's transition toward renewable energy. "Honestly, renewable energy and these backup plants like Castle Bluff, they really do go hand in hand," Moore told St. Louis Public Radio. The plant is expected to begin operating in fourth-quarter 2027. Subscribers can learn more by viewing the project report.
Plans for simple-cycle units also are present, often at peaking stations. ProEnergy Services (Sedelia, Missouri) is gearing up to construct a 306-MW peaking station using six 51-MW simple-cycle units. Construction is expected to last about a year and half, and the units should begin operating by the end of 2026 if the project moves forward as expected. Subscribers can click here to learn more.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Noting that overall U.S. electricity generation was up 3% in June through August this year versus the same period of 2023, the EIA goes on to state that nine of the 10 days with the most natural gas-fired generation on record occurred this past summer, with six of those days occurring in August. Natural gas represented on average for the summer about 45% of the total U.S. fuel mix used for power generation, up from 29% a decade earlier.
Part of the reason utilities are turning to natural gas-fired generation is its ability to provide steady baseload power with less emissions than coal. While baseload coal-fired plants have been closing, renewables have been gaining ground in the U.S., but they suffer from the intermittent generating nature. Wind turbines only produce power when wind is available; solar plants generate power only when the sun is shining (although battery storage is going some way to solve this problem). When utilities need a reliable, steady source of reliable baseload power, natural gas now seems to be the go-to fuel.
And this doesn't seem set to change, even as more renewable energy plants crop up each month. Industrial Info is tracking more than 75 capital projects worth $12.7 billion in the U.S. involving natural gas-fired generation that are set to kick over the next 12 months. While not all of these will be built as planned, the high numbers demonstrate that natural gas will continue to play an important role in U.S. power generation.
The overwhelming majority of projects call for combined-cycle units, and many of these units are being added to existing plants. Examples of these additions include Louisville Gas & Electric Company and Kentucky Utilities Company's (both Louisville, Kentucky) addition of a 621-megawatt (MW) single-shaft combined-cycle unit at the Mill Creek Power Station in Louisville. Construction of the unit is expected to begin in the first half of next year. The equipment will be able to burn up to 50% hydrogen when the cleaner-burning fuel becomes more readily available and economical. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more by viewing the project report.
Another gas-fired unit addition is set to take place at NRG Energy Incorporated's (NYSE:NRG) (Houston, Texas) Cedar Bayou Power Station in Baytown, Texas. The Mitsubishi turbine-generator set will provide nearly 700 MW of power when completed in early 2028. Engineering, procurement and construction firm Burns & McDonnell (Kansas City, Missouri) is expected to break ground on the unit early next year. Subscribers can click here to learn more about the project, including contact details for key decision makers.
Some of the largest projects planned to break ground in the upcoming year are expected to add more than 1 gigawatt of gas-fired generation and have investment values of more than $1 billion. Examples include Competitive Power Ventures Incorporated's planned CPV Basin Ranch Energy Center in Ward County, Texas, about 90 miles southwest of Midland, near areas of intense Permian Basin oil and gas production. The facility would use two single-shaft combined-cycle units to produce 1,200 MW of power. Construction on the plant is expected to begin in the second half of next year and take about three years to complete. Subscribers can learn more by viewing the project report.
Another project will take advantage of the infrastructure of a former coal-fired plant and go in as a brownfield combined-cycle installation in St. Louis, Missouri. Ameren Corporation (NYSE:AEE) (St. Louis) plans to construct the Castle Bluff Energy Center at the former Meramec coal-fired plant, which shut down in 2022. The new plant will have four 200-MW combined cycle units to provide 800 MW of total generation. The facility will not be used to provide baseload power, but rather as a peaking station to provide power in times when demand nears the capacity of existing power sources. Jeff Moore, Ameren's director of combustion turbine-generators, said the project is a necessary element in Ameren's transition toward renewable energy. "Honestly, renewable energy and these backup plants like Castle Bluff, they really do go hand in hand," Moore told St. Louis Public Radio. The plant is expected to begin operating in fourth-quarter 2027. Subscribers can learn more by viewing the project report.
Plans for simple-cycle units also are present, often at peaking stations. ProEnergy Services (Sedelia, Missouri) is gearing up to construct a 306-MW peaking station using six 51-MW simple-cycle units. Construction is expected to last about a year and half, and the units should begin operating by the end of 2026 if the project moves forward as expected. Subscribers can click here to learn more.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
