Coal Plant Conversion to Biomass Delayed on EPA Rule Uncertainty

Georgia Power will delay the conversion of its coal-fired 155-MW Plant Mitchell in Albany, Ga., to run on wood waste until the Environmental Protection Agency better defines rules governing industrial boiler emissions in April 2010.

Georgia Power had originally planned to begin retrofit construction at Plant Mitchell in April 2011 with the unit becoming operational in June 2012. A new project schedule has yet to be determined.

The anticipated industrial boiler “Maximum Achievable Control Technology rule”—also known as “IB MACT”—would regulate emissions of hazardous air pollutants, such as certain acid gases, organics, metals, and possibly other pollutants, from industrial boilers. The rule would likely affect biomass boilers like the one planned for Plant Mitchell, the company said last week.

“Georgia Power is committed to furthering the development of renewable energy in Georgia,” said Jeff Burleson, Georgia Power’s director of Resource Policy and Planning. “We’re disappointed to have to delay this large biomass project and the benefits it can deliver. However, by delaying capital spending on the project we’re significantly reducing the cost risk to customers.”

The company said that once the new EPA rules are better defined, it would “evaluate the potential impact they might have on the conversion project at Plant Mitchell.” The company also plans to study other boiler technologies in the event the rules significantly impact the cost of the biomass boiler conversion currently planned for the plant.

The utility had asked the Georgia Public Service Commission to approve the conversion to wood biomass in August 2008. Upon conversion, the plant is expected to be capable of producing 96 MW—making it one of the largest wood biomass plants in the U.S.

Surplus wood fuel for Plant Mitchell would have come from suppliers operating within an approximately 100-mile radius of the plant.

Source: Georgia Power