Motor Failure, Layoffs, Budget Strains, and Inefficiencies Combine to Shutter Newark Bay Cogen

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Researched by Industrial Info Resources (Sugar Land, Texas). Newark Bay Cogeneration (Newark, New Jersey), owned by Newark Bay Partnership, a subsidiary of MMC Energy & Morris Energy Group, was forced to take a 50-megawatt (MW) Unit 02 CT/HRSG offline in July, due to the loss of row one blades located on the main compressor. The blades broke and damaged nineteen stages of the compressor. To operate, the motor has to be completely re-bladed at an estimated cost of $1.75 million.

Plant officials stated that the motor remains at the site as the plant downsizes with layoffs. An exact date for motor repairs has not been decided. The Newark Bay Cogeneration plant began operation in 1993, as a baseload unit and was subsequently reduced to peaking status. The cogen has two other generating units and a total generating capacity of 140 megawatts when at full load.

Because the station has no auxiliary boiler to supply steam to the HRSG to keep it from freezing during the winter months, the owner is planning to drain the plant and shutter the Mitsubishi 40 MW ST unit and the Siemens 50 MW Unit 01 CT/HRSG on September 30, 2006, with no plans to restart until April 2007. There is no power purchase agreement in place at this time, so the company thinks it would be feasible to shut down the plant for the winter on an economic reserve basis until next spring, since the plant only operates as a peaking plant.

Company officials stated that at one time they had an auxiliary boiler and used sparging lines to keep the HRSG’s warm, but decided to get rid of it due to the cost, which was $1,000 per day. At one time a true cogen, Newark Bay supplied steam to adjacent chemical plants Darling/Delaware and Cardolite, but suspended superheated steam delivery due to poor economics.

MMC Energy, LLC is a New York/London-based energy merchant bank and asset management company with value in the power industry and natural gas assets associated fuel contracts in North America & Europe.

Morris Energy Group based in Morristown, New Jersey is a privately held electricity company. MEG is growing through the acquisition of generating facilities and other electricity-related companies in the United States.

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