A Maryland-based power generation group said it will build an 1,800-MW combined-cycle natural gas-fired power plant in West Virginia, a project that will utilize carbon capture and storage to take advantage of a government tax credit.
Competitive Power Ventures (CPV) on Sept. 16 said it plans for the project to be operational later this decade. Company officials said the power plant’s construction was made possible by the recently passed Inflation Reduction Act, which expanded the 45Q federal tax credit for carbon capture.
“CPV is pleased to work closely with West Virginia to bring this project to fruition in the coming years. This project and technology represent a significant step forward for our Nation in deploying low carbon, dispatchable generation critical to maintaining reliability as we address our collective concerns regarding climate change,” said Gary Lambert, CEO of Silver Spring, Maryland-based Competitive Power Ventures. “West Virginia has been extremely forward thinking at the local, state and national level, and we cannot thank Senator Manchin enough for his leadership in making this opportunity possible.”
The 45Q federal tax credit was recently expanded to incentivize carbon capture and sequestration for power generation. West Virginia lawmakers earlier this year passed legislation, signed into law by Republican Gov. Jim Justice, that established state rules for carbon sequestration.
“The Inflation Reduction Act is already having a positive impact for the people of West Virginia and carbon capture utilization efforts here in the United States,” said U.S. Sen. Joe Manchin, the West Virginia Democrat who chairs the Senate Energy and Natural Resources Committee. “I’m pleased Competitive Power Ventures is investing in the Mountain State and look forward to seeing the benefits of this investment–including long-term, good-paying jobs and supporting our regional economies–for years to come.”
Support for Existing Business
Officials on Friday in announcing the project noted that several major technology and industrial companies have made pledges to lower their environmental footprint, including increasing their use of lower-carbon energy resources. Justice said the power plant will support the state’s existing manufacturing and industrial companies, and also bring future investments.
“This is an outstanding day for West Virginia,” said Justice. “Competitive Power Ventures and the innovation they bring to the energy industry is amazing. We welcome them to West Virginia.”
U.S. Sen. Shelley Moore Capito, a Republican and ranking member of the Senate Environment and Public Works Committee, said, “Competitive Power Ventures’ multi-billion-dollar investment in this combined-cycle power plant demonstrates that West Virginia can provide natural gas to markets in our neighboring states, as needed energy supplies for our allies abroad, as a manufacturing input here at home and across America, as well as power generation here in West Virginia. I’m proud that my bipartisan work on the 45Q carbon capture tax credit–and in specifically calling for the addition of a direct pay option–paved the way for this project, which I hope will be the first of several carbon capture, utilization, and storage investments in West Virginia.”
Officials said more than 1,000 jobs will created for construction of the project, and said hundreds of additional jobs will be supported for the state’s natural gas production industry.
“Pennsylvania and Ohio have built numerous combined-cycle natural gas power plants over the last few years,” said Chuck Parker, president of the WV State Building & Construction Trades Council. “Now it is finally West Virginia’s turn. We have been training our members for a project like this and will be able to supply the workforce needed.”
The power plant project already has entered regulatory review, though no firm timeline for operations has been announced.
CPV is known for its innovative natural gas-fired power plants, along with its deployments of solar and wind power. The CPV Fairview Energy Center in Pennsylvania received a Top Plant award from POWER in 2020.
—Darrell Proctor is a senior associate editor for POWER (@POWERmagazine).