DNREC Secretary signs agreement with NRG to permanently shut down additional coal unit at Indian River power plant

Enstreet News Bureau
7/17/2010

Delaware Department of Natural Resources and Environmental Control Secretary Collin O’Mara announced that DNREC has finalized a consent agreement with NRG Energy that will permanently shut down a third coal-fired electrical generating unit in 2013 at the Indian River Power Plant, leaving only the facility’s newest and lowest-emitting unit to remain in operation. The agreement is being filed in superior court for final approval.

The shutdown agreement for NRG’s Unit 3 represents a key component of the state’s strategy to improve public health outcomes in Sussex County and restore the health of the Inland Bays by significantly reducing air pollution, water pollution, greenhouse gas emissions, fly ash generation, and fishery impacts.

As part of the agreement, NRG has also committed to focus its negotiations for offshore wind turbines for the Bluewater Wind project on companies that present a significant economic development and manufacturing opportunity for Delaware. Further, NRG will develop job training programs in partnership with Delaware colleges to provide training opportunities for current employees and the local labor force for clean energy jobs including the company’s planned offshore wind park, electric vehicle infrastructure and solar technology. NRG expects to get to appropriate staffing levels without layoffs, through retirements, retraining, attrition, and redeployment.

The Indian River Power Plant currently has traditionally included four coal-fired units. Under a consent decree reached with DNREC in 2007 and the construction permits issued in 2009, NRG agreed to shut down its two oldest units in 2010 and 2011, and to install air pollution controls on Units 3 and 4 by the end of 2011 to reduce emissions of NO_x, SO₂ and mercury. In May 2010, NRG discontinued operation of Unit 2. In May 2011, the company will shut down Unit 1. By the end of 2011, NRG will complete installation of pollution controls on its largest unit, Unit 4, which will cost approximately $360 million and create up to 350 construction jobs. As part of the shutdown agreement finalized today, NRG will operate Unit 3 in compliance with all existing state and federal emissions regulations through 2013, rather than operate for decades with some additional pollution controls.

"This agreement will be a significant step forward for environmental quality and to restore the health of the Inland Bays,” said Governor Jack Markell. "The agreement also includes a strong economic development component that provides critical workforce training for jobs in a clean energy economy."

Secretary O’Mara also assessed the significance of the agreement: “This agreement will protect public health and improve air quality by significantly reducing air pollution and virtually eliminating the use of water and impacts on our fisheries from the Indian River Power Plant,” he said. It dramatically reduces the amount of fly ash produced from coal combustion and significantly cuts greenhouse gas emissions which will be reduced at Indian River by almost 50%.”

“Also, NRG’s plan for an offshore wind park, which will require 500 construction jobs, and now their commitment to provide specialized training for current employees and local workers for those jobs and other alternative energy programs, makes this a major step forward for Delaware’s improving public health and growing our clean energy economy,” Sec. O’Mara said.

With respect to system reliability, experts working with operators of the regional electrical grid indicate that the unit shutdown is not expected to have a significant impact on local power supply or the overall cost of electricity services to Delaware customers. Further, reductions in energy demand, improvements in transmission infrastructure, additional renewable energy generation (including NRG/Bluewater Wind’s planned offshore wind project, off the coast of Rehoboth Beach) will further mitigate any long term impacts when complete.

Part of the consent order deals specifically with NRG’s commitment to economic development in Delaware and providing job training opportunities including the following:

1. Offshore Wind Manufacturing: NRG will be negotiating over the next six months with offshore wind turbine manufacturer(s) that would offer significant economic development and job opportunities for Delaware in connection with the NRG wind park or other offshore wind projects.

2. DelTech Training Program: In partnership with Delaware Technical and Community College, NRG will help develop and provide $150,000 for a Wind Turbine Technician training program in the construction and operation trades for any offshore wind project. Graduates will be trained in time for work on the Mid-Atlantic Wind Park.

3. Construction Training for NRG Wind Park: NRG will provide tuition reimbursement to qualified existing NRG employees who enroll in the DelTech technician training program to be developed. NRG employees will be offered wind park construction jobs first, to the extent possible and consistent with State and Federal employment laws.

4. Electric Vehicle Infrastructure Jobs: NRG and the University of Delaware expect to develop a program to train electricians to install home, commercial and public electric car charging stations as part of discussions for electric vehicle infrastructure development in Delaware.

5. Solar Infrastructure Jobs: NRG will work with DelTech, University of Delaware and Delaware State University programs to train installers and service technicians of solar technologies. NRG will also evaluate developing large scale solar projects with attention to supporting local job creation in the areas of production, installation and maintenance.

Prior to finalizing the shutdown agreement, DNREC was engaged in updating the facility’s permit that allows the intake of water from Indian River for cooling and the discharge of that water to the river to require significant reductions in the amount of water needed and temperature impacts through a technology such as a closed cycle cooling water structure. Unit 4 is already equipped with a cooling water structure. Similarly, DNREC has been scrutinizing the disposal and containment of fly ash at the facility and impacts on water and air quality. A permit was recently issued requiring a state-of-the-art landfill to be constructed and mitigation measures are being implemented to contain an historic fly ash disposal area. NRG also recently agreed to install additional monitors to evaluate any airborne fly ash particles.

Over an expected operational life of at least 30 years, the shutdown is anticipated to achieve the following percentage reductions over and above what the 2007 agreement would have achieved:

• 86% reduction in water use by eliminating 59.13 billion gallons of cooling water drawn annually from Indian River

• 81% reduction of NO_x by eliminating about 1,173 tons annually

• 49% reduction of SO₂ by eliminating 6,252 tons annually

• 93% reduction of the greenhouse gas CO₂ by eliminating 837,000 tons annually

• 97% reduction in land-fill materials including eliminating fly ash production of between 40,000 and 70,000 tons annually

• 93% reduction of mercury emissions by eliminating five pounds annually

• 93% reduction of particulate matter emissions

• Elimination of fisheries impacts on blue crabs, bay anchovy, Atlantic menhaden, Atlantic croaker and winter flounder and weakfish resulting from the water withdrawal.

Source: DNREC