TXU Corp. (NYSE: TXU - News) recently announced plans to invest up to $10 billion in power generation facilities in the state of Texas. This would include the largest voluntary emissions reduction program of its type in the nation. They plan to build 11 new generation units at nine existing sites. Eight new units, totaling 6,400 megawatts (MW) of net capacity were announced in addition to three units previously announced totaling 2,200 MW of net capacity, all of which should be operational by 2010. In addition, TXU will double its renewable energy portfolio by 2011 to approximately 1,400 MW. These units should be sufficient to meet Texas' growing electric demand through 2015.
Their planned investment also includes up to $2 billion for installation of the best available control technology (BACT) to minimize emissions at the 11 expansion units. The new plants will have among the lowest SO2, NOx, and mercury emissions rates in the nation and will be 80 percent cleaner than the average U.S. coal plant. To help find innovative solutions to Texas' long-term power needs, TXU also plans to invest up to $2 billion in the development and commercialization of the next horizon of cleaner power plant technology, including integrated gasification combined cycle (IGCC) technology.
TXU will more than offset key emissions from the new units by reducing emissions at existing facilities. With this plan, It will double its solid-fuel generation capacity and at the same time will reduce key emissions by 20 percent from where they are today.
The plan includes up to $500 million for voluntary emission reductions, accomplished through fuel switching and retrofitting state-of-the-art emission controls at existing units. These actions will reduce their current mercury emissions by more than 50 percent, well beyond current regulatory requirements, and make substantial reductions in sulfur dioxide (SO2) and nitrogen oxide (NOx) emissions as well. Overall, these actions will more than offset the SO2, NOx, and mercury emissions from the new coal plants. TXU will reduce at least 1.5 pounds of these key emissions for every one pound from the new units.
Texas has one of the fastest growing economies in the country and is projected to add nearly 6 million residents within a decade. At the same time, Texas electric power reserve margins are compressing rapidly and would be expected to fall below levels deemed reliable by 2010 without these expansions. Texas has a high reliance on natural gas for power generation, with 72 percent of the state's generation capacity depending on natural gas for fuel, compared to the U.S. average of 45 percent. With increasing natural gas prices coal is the most economical source of power. With the annouced emissions controls, the new coal units will not cause any more pollution than would be expected from new gas plants.
TXU will work in exclusive partnerships with two of the leading engineering and construction firms in the world, Bechtel Power and Fluor Corp. Bechtel and Fluor have built more of the world's coal-fired power plants over the past 20 years than any other firms.
With the approval of these projects, the $10 billion investment will create approximately 40,000 construction and other temporary jobs and 21,000 permanent jobs, and add nearly $14 billion to the state gross product.
Technorati tags: coal, electric power, energy, technology
Well, more coal powerplants means more feedstock for these guys. They've just redesigned their site with some new info. They've been testing a unit for the past few months in the southwest. They indicate in their production testing they can get 5,000-10,000 gallons of biodiesel and a similar amount of ethanol per acre.
Posted by: Cervus | May 03, 2006 at 01:09 AM
Hmm, maybe the same SO2, NOx and mercury as natural gas, but what about CO2? I don't see sequestration mentioned here...
Posted by: JN2 | May 03, 2006 at 04:32 AM
With wind power in such short supply and heavy demand that it has to be raffled off to customers in Texas because it's the lowest cost source and the cleanest, these good corporate citizens build coal fired CO 2 belching monstrosities instead.
And call it green. Bechtel is involved,the legendary nuclear contractor responsible for contaminating the Columbia River basin.
And taking over the water systems in developing nations. Then jacking up the prices so locals cannot afford water.
Their contracting record in Iraq is also atrocious, with zero consequences, similar to the state of Halliburton's performance and accountability. Welcome to monopoly crony capitalism, say goodbye to free and fair markets, and real competitive capitalism.
Corporatism at it's worst, that is politically connected crony companies like Bechtel.
http://en.wikipedia.org/wiki/Corporatism
Posted by: amazingdrx | May 03, 2006 at 06:57 AM
Anybody have any real info on why TXU isn't doing more wind??
Posted by: Nick | May 03, 2006 at 10:53 AM
Does TXU do wind at all? If not, they don't know how, and would probably mess it up if they tried.
Meanwhile, Texas does have the second-largest capacity of wind power among the 50 states, with over 2000 MW installed.
Posted by: Robert | May 03, 2006 at 02:10 PM
I appreciate what everyone is saying here, but, the person who has really nailed it is Dr. Kevin Peterson ... you gotta check out his: http://www.NoneoftheAboveforPresident.com
Posted by: Millie | May 03, 2006 at 08:01 PM
That's what makes this stand out so boldly. Wind is working so well in Texas, given a choice, customers are flocking to it.
And yet the monopoly energy conglomerates still rule access to capital markets, even where wind has worked out best.
I bet the big enerfy execs rue the day they gave consumers the choice on which enerfy source they wanted. The feeling was probably that wind and solar would naturally fail because of consumer backlash over higher prices.
Wind is cheaper, what a surprise, now big operators will favor a no choice plan for consumers? We'll see, but with a shortage of wind and billions going to coal, that will be the effect.
No choice but more CO 2 from fossil fuel combustion and resulting eco devestation.
Posted by: amazingdrx | May 04, 2006 at 12:14 AM