Minn. Power Considers Fuel Switch, Coal Unit Retirement to Comply with Fed, State Mercury Rules

A newly announced resource strategy could require Duluth, Minn.–based Minnesota Power to convert its 110-MW Laskin Energy Center in Hoyt Lakes, Minn., to a natural gas peaking facility in 2015, install environmental upgrades at its 558-MW Clay Boswell Energy Center Unit 4 in Itasca County, and retire one of three coal-fired units at its 225-MW Taconite Harbor facility in Schroeder.

The ALLETE division said the strategy would diversify its generation mix and reduce emissions from its existing power fleet to comply with the Environmental Protection Agency’s (EPA’s) Mercury and Air Toxics Standards and the Minnesota Mercury Emission Reduction Act.

The plan requires investments of about $350 million in additional environmental upgrades at its largest generator, Boswell Energy Center Unit 4, to comply with the state and federal rules. "These upgrades, combined with other emission reduction investments made since 2006, will result in system-wide emission reductions of more than 85 percent by 2016. Boswell 4 in 2010 made major nitrogen oxide emission reductions and increased its operating efficiency with new turbine rotor investments," the company said.

The plan to convert its Laskin Energy Center to natural gas by 2015 will cost $15 million. The facility will become Minnesota Power’s first all–natural gas fuelled facility when completed.

“We believe re-fueling Laskin and retiring one generating unit at our Taconite Harbor facility are the most cost effective solutions for our small coal units to comply with state and federal regulations,” said Minnesota Power Vice President of Strategy and Planning Al Rudeck.

Sources: POWERnews, Minnesota Power

—Sonal Patel, Senior Writer (@POWERmagazine)

This story was originally posted on Feb. 1