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Wabash Valley coal gasification plant closing!

January 13th, 2016

The Wabash Valley IGCC (coal gasification) generating plant was built as a demonstration project, and oh what a miserable failure that was. Such a failure that they’re now shutting down the coal gasification part and will be running only on natural gas.

After it was “finished” it took years of work, with at times 22 engineering contractors, to cobble it together and make it run. It rarely ran at capacity, and often didn’t run at all. Operating costs were through the roof. It also exploded and killed two workers, which made headlines just as our opposition to the Mesaba Project was getting into full swing, yet that explosion was just the tip of the iceberg in the many problems with this project.

Wabash River IGCC plant explodes, two workers killed

More on coal gasification plant explosion

Coal gasification explosion: metal fitting broke, released gas

Wabash River Final Technical Report(it was “routinely” in violation of its water permit for selenium, cyanide and arsenic)

And here’s the good news — IT’S SHUTTING DOWN FOR GOOD!

47 employees will be laid off. Wabash Valley Power Association to cease operations at sgSOLUTIONS

And:

Company to shutter some energy production at West Terre Haute plant

By Nick Hedrick Tribune-Star

Citing increased operational costs and the ongoing decline in natural gas prices, Wabash Valley Power Association announced plans Tuesday to close its synthetic gas plant and one steam turbine in West Terre Haute.

The cooperative plans to operate the sgSolutions synthetic gas plant and the turbine at Unit 1 of the neighboring Wabash River generating station through May 1, communications manager Lisa Richardson told the Tribune-Star. Following the shutdown, the remaining turbine will operate by natural gas from an existing pipeline at the site on Bolton Road.

Based in Indianapolis, the nonprofit association provides wholesale electricity to 23 distribution co-ops in Indiana, Illinois and Missouri, including Parke County REMC and Enerstar Electric in Paris.

Approximately 47 employees will be laid off, and Richardson said the cooperative will offer a comprehensive severance package to those affected. About 25 contractors who typically work at the facility each day are also impacted by the decision, she said.

The association purchased sgSolutions from Duke Energy in 2005. sgSolutions converts solid fuels like coal into a synthetic gas, which currently fuels the generating station, according to a cooperative news release.

Richardson said the station will operate from natural gas once the plant closes. The station currently operates from either synthetic or natural gas.

“It’s no longer economically feasible to run the sgSolutions plant and the steam turbine,” Richardson said.

Winter natural gas futures prices are “significantly lower” than in previous years, according to the U.S. Energy Information Administration.

The agency pointed to record high production and storage levels and the forecast for warmer than average weather this winter in the northern and western U.S., resulting in an expected decline of residential natural gas consumption.

Wabash Valley Power says the moves will increase efficiency and reduce wholesale electricity costs to distribution members.

The station currently generates 260 megawatts of electricity per day, Richardson said. That output will drop to 180 megawatts daily once the station is fueled solely by natural gas.

Richardson said the cooperative is confident there will be enough electricity to serve customer needs. Several other plants operated by Wabash Valley Power can feed the system in the event of an outage with the remaining turbine, she said.

Posted by Carol A. Overland

Filed in Power Plants - includes Mesaba coal gasification

1 Comment »

One Response to “Wabash Valley coal gasification plant closing!”

Alan Muller Says:
January 13th, 2016 at 2:39 pm
Good news!

Wabash Valley coal gasification plant closing!

January 13th, 2016

Wabash River IGCC plant explodes, two workers killed

More on coal gasification plant explosion

Coal gasification explosion: metal fitting broke, released gas

Wabash River Final Technical Report(it was “routinely” in violation of its water permit for selenium, cyanide and arsenic)

Company to shutter some energy production at West Terre Haute plant

One Response to “Wabash Valley coal gasification plant closing!”

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