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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Construction began this summer on a 700-megawatt (MW), natural-gas combined-cycle (NGCC) generator in Carroll County, Ohio, one of five large, gas-fired power projects under development or construction in that state, with aggregate value exceeding $3 billion. These projects, which are expected to use gas extracted from either the Utica or Marcellus shales, are being developed to help replace coal-fired generation that is being closed due to tougher environmental regulation.

Bechtel Corporation (San Francisco, California) began construction on the Carroll County Energy Center in July. Located in Northeast Ohio, the plant is scheduled to be operating in mid-2017. It has a total investment value (TIV) of about $800 million. Bechtel is providing engineering, procurement and construction (EPC) services to the energy center, which is owned by an affiliate of Advanced Power AG (Zug, Switzerland).

The Carroll County Energy Center will sell its electric output, capacity and ancillary services into the PJM market. In addition to its proximity to the Utica and Marcellus shales, the project is located near the Tennessee Gas Pipeline system operated by Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) and a 345-kilovolt (kV) transmission line owned by American Electric Power Company Incorporated (NYSE:AEP) (Columbus, Ohio), all of which give the project important logistical and competitive advantages.

Carroll County is located in the heart of Ohio's Utica Shale gas country, with 431 Oil & Gas wells, of which 363 are producing, according to the Akron Beacon Journal. Carroll County has the largest number of drilled and producing wells in the Buckeye State. Gas production from the Utica Shale is about 3 billion cubic feet per day (Bcf/d), according to the U.S. Energy Information Administration's most recent Drilling Productivity Report. October's production represents an increase of about 57 million cubic feet per day (MMcf/d) over September's production, despite low prices for natural gas.

Click to view Utica Natural Gas ProductionClick on the image at right to see average daily production of natural gas from Ohio's Utica Shale.

"This is an important project that will offer a significant stimulus for the economy of Carroll County," said Tom Spang, Advanced Power's chief executive, in a statement. "We look forward to continuing our collaborative working relationship with Bechtel as we move from development to construction."

Bechtel's operations manager for power, Scott Osborne, added: "We are proud to be working with Carroll County Energy LLC to help deliver this new facility. We have extensive experience successfully delivering combined-cycle facilities, and we look forward to delivering a quality facility that will meet the growing energy needs of the region."

When affiliates of Bechtel and Advanced Power began developing the Carroll County project in 2013, they predicted Ohio would retire about 5,800 MW of coal-fired capacity by yearend 2015. The state's electricity needs continue to grow, despite the scheduled retirements of so many coal-fired power plants, a project manager for the Carroll County project said.

During construction, the project is expected to support up to 700 jobs. The plant will include state-of-the-art emissions controls. The developer said the Carroll County project will emit about 50% of the carbon dioxide (CO2) and less than 10% of the sulfur dioxide (SO2) and nitrogen dioxide (NO2) that a conventional coal-fired power plant would produce to generate the same amount of electricity.

Bechtel said the Carroll County plant will be arranged in a 2x2x1 configuration--two gas turbines, two heat recovery steam generators and one steam turbine. General Electric Company (NYSE:GE) (Fairfield, Connecticut) will supply two 210-MW MS7001FA.05 combustion turbine generators, two heat-recovery steam generators, and one 280-MW D602 steam turbine generator. The plant heat sink will have an air-cooled condenser, which significantly reduces the amount of plant make-up water needed as compared to conventional wet cooling. For more information on this project, see Industrial Info's project report.

Beyond the Carroll County Energy Center, Ohio has these other gas-fired power projects under development or under construction:
  • Oregon Clean Energy Center, a grassroot 800-MW NGCC located in northwestern Ohio. Construction of that project began in late 2014, and is expected to finish in early 2017. This $860 million project is being developed by a unit of CME Energy LLC (Boston, Massachusetts). Black & Veatch Incorporated (Overland Park, Kansas) is providing EPC services to this project. For more information on this project, see Industrial Info's project report.
  • Rolling Hills Generating Station, an $850 million unit addition in southeastern Ohio being developed by Tenaska Incorporated (Omaha, Nebraska). The existing 838-MW, simple-cycle generator will be converted to a combined-cycle configuration by adding four heat-recovery steam generators to the four existing Siemens 168-MW combustion-turbine generators and adding two new steam-turbine generators. The project is scheduled to begin construction in October 2016, and to be operating by mid-2018. For more information on this project, see Industrial Info's project report.
  • Lordstown Generating Station, an $800 million, 800-MW grassroot project in northeast Ohio's Trumbull County. The project, under development by Pure Energy Resources LLC (Burlington, Massachusetts), is scheduled to begin construction next month and wrap up by mid-2018. Siemens Corporation (Orlando, Florida), part of Siemens AG (NYSE:SI) (Munich, Germany), is providing design-build services to this project. For more information on this project, see Industrial Info's project report.
  • Middletown Energy Center, a 500-MW, $500 million project slated to be built in southwest Ohio, in Butler County. NTE Energy (Saint Augustine, Florida) is developing this grassroot project, which is scheduled to begin construction next month. The developer plans a mid-2018 start-up date. Gemma Power Systems LLC (Glastonbury, Connecticut) is providing EPC services to this project. For more information on this project, see Industrial Info's project report.
"The Carroll County facility, and other gas-fired power plants in Ohio, are greatly benefiting from the shale revolution," said Britt Burt, Industrial Info's vice president of global research for the Power Industry. "Despite low prices, natural gas production from the Utica Shale continues to grow strongly. As with real estate, sometimes success in power-plant development comes down to location, location and location."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
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