Fuel Conversion is Key to Rescuing Plants from Closure

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Researched by Industrial Info Resources (Sugar Land, Texas)--Coal-fired power plants have been closing across North America due to more stringent environmental regulations over the last few years. But plant owners are also looking to keep facilities operational by converting them to use alternative fuel sources, such as natural gas and biomass, if it proves economically feasible. At many older coal-fired power plants, the cost to convert a boiler to use an alternative fuel is much less than installing expensive and more stringent environmental controls.

The coal-fired plants that are the most likely candidates for fuel conversion are typically capable of generating less than 300 megawatts (MW), approaching their fourth or fifth decade in operation, have limited air quality control systems and use sub-critical boilers.

Once converted, the power plants are ideally suited for load cycling and following fluctuations in intermittent load caused by renewable energy facilities, such as solar and wind, and to complement regional base load generation.

Currently, Industrial Info is tracking 20 coal-fired power plant fuel conversion projects across North America valued at $1.24 billion, with 18 power plants converting to natural gas and two power plants converting to biomass fuel.

NRG Energy Incorporated (NYSE:NRG) (Princeton, New Jersey) is looking at converting three Alstom/CE coal-fired boilers at its Dunkirk Generating Station in New York to burn natural gas by installing new burners and modernizing the boiler burner management system, which is the interface between the boiler and operator controls. The project would need a 6-mile natural gas line extension to the facility.

Portland General Electric (NYSE:POR) is looking at converting the 661-MW Unit #1 at the Boardman Power Station in Oregon to burn biomass instead of coal by modifying the Amec Foster Wheeler boiler, and making modifications to the existing burner management system. The company is still test-burning and awaiting approvals to move forward with the project.

Power plants that have converted to natural gas as their fuel source can run with less manpower because it takes fewer people to operate and maintain the facility, as there is a lot of work involved with coal loading, handling and unloading, plus there are significant maintenance costs from the inherent erosive and corrosive nature of the fuel.

If a plant fuel conversion, or addition of environmental emission controls, prove too costly, owners can also look at the addition of one or more simple-cycle combustion turbines or reciprocating generators fired by natural gas as a cost-effective alternative and retire the coal-fired generating assets.

Biomass and wood waste can also be used to co-fire older coal plants to offset air emissions and save on coal fuel costs, which could extend the life of the power plant and give the owners time to obtain additional power sources.

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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.