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Researched by Industrial Info Resources (Sugar Land, Texas)--North America coal-fired power plant retirements are accelerating due to increasing financial pressures to comply with emission controls, ash disposal requirements, pressures from environmental groups as well as inefficiencies due to the age of the facilities. According to a report by the Government Accountability Office (GAO) (Washington D.C.), more coal-fired power plants will be retired by 2025 than previously thought--about 42,192 megawatts (MW) of capacity.
These plant retirements could not only affect electricity rates in certain regions of the country, but could also contribute to reliability concerns as well. As these base load power plants are retired, other generators, mostly natural gas and nuclear, must be available to make up the load deficit in the region.
Coal plant demolition/dismantlement projects are a major opportunity for contractors, as the typical 30-50 year lifespan of a coal-fired power plant and the associated retirements have coincided with pressures to reduce coal consumption in North America, as well as costly environmental requirements by the EPA and the current administration.
Industrial Info tracking 49 coal-fired power plant demolition projects in North America, with a total investment value of $912 million. The top three market regions for such projects include the Mid-Atlantic, Great Lakes and Rocky Mountains, with 26 projects valued at $559 million. The demolition and dismantlement of two coal-fired units at the Arapahoe Power Plant, located in Denver, Colorado, is valued at $10 million. Plant owner Xcel Energy Incorporated (NYSE:XEL) (Minneapolis, Minnesota), is conducting the detailed design for the project, which is slated for kickoff in fourth-quarter 2015, with completion in fourth-quarter 2016.
An energy market outlook by Black & Veatch (BV) (Overland Park, Kansas) expects about 60 gigawatts (GW) of coal-fired power generation to be retired by 2020. Because maintaining an older power plant, even in a mothballed state, is very expensive due to the costs of manpower, security, environmental compliance, taxes, etc., many plant owners are demolishing these old and inefficient facilities and either building new peaking or combined cycle generation on the same site, or selling the land to city or private developers.
Retirements and demolition of power plants involve an expensive and lengthy process of converting an industrial complex to a grassy field and could include demolishing or removing all structures, equipment and underground electrical and piping or selective demolition, which only removes specified equipment.
Before an industrial complex is demolished to ground level, many local, state and federal permits must be acquired. The removal or abatement of mercury, lead, asbestos, polychlorinated biphenyls (PCBs), contaminated soil and other hazardous materials must be completed before demolition begins. Also, coal ash disposal regulations become a costly environmental hurdle for utility owners, which is complicated by an expected requirement by the EPA to protect waterways and ground water from being contaminated by coal ash pollutants.
Industrial Info is tracking two coal ash landfill projects in North America with a total investment value of $122 million.
The Labadie Coal 2,400mw Power Plant Ash Landfill Project, located at Labadie, Missouri, has a total investment value of $27 million. Ameren Corporation (NYSE:AEE) (St. Louis, Missouri), with environmental consultant AECOM (NYSE:ACM) (Los Angeles, California), is conducting permitting for the project, which is expected to kick off in fourth-quarter 2015, with completion in in second-quarter 2016.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three 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.
These plant retirements could not only affect electricity rates in certain regions of the country, but could also contribute to reliability concerns as well. As these base load power plants are retired, other generators, mostly natural gas and nuclear, must be available to make up the load deficit in the region.
Coal plant demolition/dismantlement projects are a major opportunity for contractors, as the typical 30-50 year lifespan of a coal-fired power plant and the associated retirements have coincided with pressures to reduce coal consumption in North America, as well as costly environmental requirements by the EPA and the current administration.
Industrial Info tracking 49 coal-fired power plant demolition projects in North America, with a total investment value of $912 million. The top three market regions for such projects include the Mid-Atlantic, Great Lakes and Rocky Mountains, with 26 projects valued at $559 million. The demolition and dismantlement of two coal-fired units at the Arapahoe Power Plant, located in Denver, Colorado, is valued at $10 million. Plant owner Xcel Energy Incorporated (NYSE:XEL) (Minneapolis, Minnesota), is conducting the detailed design for the project, which is slated for kickoff in fourth-quarter 2015, with completion in fourth-quarter 2016.
An energy market outlook by Black & Veatch (BV) (Overland Park, Kansas) expects about 60 gigawatts (GW) of coal-fired power generation to be retired by 2020. Because maintaining an older power plant, even in a mothballed state, is very expensive due to the costs of manpower, security, environmental compliance, taxes, etc., many plant owners are demolishing these old and inefficient facilities and either building new peaking or combined cycle generation on the same site, or selling the land to city or private developers.
Retirements and demolition of power plants involve an expensive and lengthy process of converting an industrial complex to a grassy field and could include demolishing or removing all structures, equipment and underground electrical and piping or selective demolition, which only removes specified equipment.
Before an industrial complex is demolished to ground level, many local, state and federal permits must be acquired. The removal or abatement of mercury, lead, asbestos, polychlorinated biphenyls (PCBs), contaminated soil and other hazardous materials must be completed before demolition begins. Also, coal ash disposal regulations become a costly environmental hurdle for utility owners, which is complicated by an expected requirement by the EPA to protect waterways and ground water from being contaminated by coal ash pollutants.
Industrial Info is tracking two coal ash landfill projects in North America with a total investment value of $122 million.
The Labadie Coal 2,400mw Power Plant Ash Landfill Project, located at Labadie, Missouri, has a total investment value of $27 million. Ameren Corporation (NYSE:AEE) (St. Louis, Missouri), with environmental consultant AECOM (NYSE:ACM) (Los Angeles, California), is conducting permitting for the project, which is expected to kick off in fourth-quarter 2015, with completion in in second-quarter 2016.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three 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.
