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Coal Power Industry: Biggest US Expansion In 2 Decades, Emissions Equivalent To Putting 22 Million Cars On The Road

MATTHEW BROWN   08/17/10 12:19 PM ET  AP

WYODAK, Wyo. — Utilities across the country are building dozens of old-style coal plants that will cement the industry's standing as the largest industrial source of climate-changing gases for years to come.

An Associated Press examination of U.S. Department of Energy records and information provided by utilities and trade groups shows that more than 30 traditional coal plants have been built since 2008 or are under construction.

The construction wave stretches from Arizona to Illinois and South Carolina to Washington, and comes despite growing public wariness over the high environmental and social costs of fossil fuels, demonstrated by tragic mine disasters in West Virginia, the Gulf oil spill and wars in the Middle East.

The expansion, the industry's largest in two decades, represents an acknowledgment that highly touted "clean coal" technology is still a long ways from becoming a reality and underscores a renewed confidence among utilities that proposals to regulate carbon emissions will fail. The Senate last month scrapped the leading bill to curb carbon emissions following opposition from Republicans and coal-state Democrats.

"Building a coal-fired power plant today is betting that we are not going to put a serious financial cost on emitting carbon dioxide," said Severin Borenstein, director of the Energy Institute at the University of California-Berkeley. "That may be true, but unless most of the scientists are way off the mark, that's pretty bad public policy."

Federal officials have long struggled to balance coal's hidden costs against its more conspicuous role in providing half the nation's electricity.

Hoping for a technological solution, the Obama administration devoted $3.4 billion in stimulus spending to foster "clean-coal" plants that can capture and store greenhouse gases. Yet new investments in traditional coal plants total at least 10 times that amount – more than $35 billion.

Utilities say they are clinging to coal because its abundance makes it cheaper than natural gas or nuclear power and more reliable than intermittent power sources such as wind and solar. Still, the price of coal plants is rising and consumers in some areas served by the new facilities will see their electricity bill rise by up to 30 percent.

Industry representatives say those increases would be even steeper if utilities switched to more expensive fuels or were forced to adopt emission-reduction measures.

Approval of the plants has come from state and federal agencies that do not factor in emissions of carbon dioxide, considered the leading culprit behind global warming. Scientists and environmentalists have tried to stop the coal rush with some success, turning back dozens of plants through lawsuits and other legal challenges.

As a result, current construction is far more modest than projected a few years ago when 151 new plants were forecast by federal regulators. But analysts say the projects that prevailed are more than enough to ensure coal's continued dominance in the power industry for years to come.

Sixteen large plants have fired up since 2008 and 16 more are under construction, according to records examined by the AP.

Combined, they will produce an estimated 17,900 megawatts of electricity, sufficient to power up to 15.6 million homes – roughly the number of homes in California and Arizona combined.

They also will generate about 125 million tons of greenhouse gases annually, according to emissions figures from utilities and the Center for Global Development. That's the equivalent of putting 22 million additional automobiles on the road.

The new plants do not capture carbon dioxide. That's despite the stimulus spending and an additional $687 million spent by the Department of Energy on clean coal programs.

DOE spokesman John Grasser acknowledged the new plants represent a missed chance to rein in carbon emissions. But he said more opportunities would arise as electricity consumption increases.

Experts say the widespread application of carbon-neutralizing technologies for coal plants remains at least 15 to 20 years away.

"This is not something that's going to happen tomorrow," Grasser said. "You have to do the required research and development and take steps along the way."

Producing clean coal power appears straightforward: Separate the carbon dioxide before it goes up the smokestack, then store it underground in geological formations.

Experimental trials have been successful but putting the concept into commercial practice has been stymied by high costs and the difficulty of isolating carbon dioxide from other gases.

"We are pushing the envelope as far as what's possible," said Jon LaCour, manager for the 115-megawatt Wygen III coal plant, which came online in northeastern Wyoming this spring. "We have no way of capturing carbon."

Inside the plant, a ton of coal per minute rumbles off conveyor belts from the nearby WyoDak mine.

Hulking steel pulverizers crush the fuel to the consistency of baby powder, fans blow it into a giant furnace and the coal goes up in flames that can top 1,700 degrees Fahrenheit, producing steam to generate electricity.

WyGen is more efficient than earlier plants, burning about 20 percent less coal. Yet the process itself has changed little since Thomas Edison built the first plant in 1882 in Manhattan.

And while dramatic advances have been made at the back end of coal plants – where Wygen's operator, Black Hills Power, removes most of the nitrogen oxides, sulfur dioxide and other acid-rain pollutants – efforts to curb greenhouse gases have lagged.

Black Hills spent $80 million on pollution controls for WyGen, bumping up its price tag to $247 million. Like most of the new fleet of plants, space was left at WyGen for the future installation of carbon-capture equipment.

As climate change emerged as a global dilemma in recent years, the coal industry at times appeared on the ropes.

Environmentalists trumpeted 100 plants dropped or delayed. Regulators imposed tighter emission limits for acid rain pollutants and reined in destructive mining practices. And the recession dampened consumer demand for power, prompting some utilities to scrap expansion plans.

But coal has not gone away.

"The reason coal burns in this country is not because anyone likes the smog. It's the cost," said Daniel Scott, a coal industry analyst with Dahlman Rose & Company in New York.

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02:07 PM on 09/02/2010
Global warming might be an issue to those living on the coasts; however, it is generally still a hoax in Wyoming and the Dakotas. It will remain until real political action, in the form of supporting candidates with guts to speak out happens.. In the Dakotas a great deal of Texas money flows into campaigns of candidates willing to deny that global warming is happening or deny that humans have significant impact. Governor Hoeven (R), soon to be Senator Hoeven (replacing Senator Dorgan D) can't even say "global warming." ND Congressman Pomeroy (D) was second to Senator Murkowski in writing legislation to keep EPA from regulating greenhouse gasses. Of the three Public Service Commissioners, all Republican, who approve construction of coal plants in North Dakota, two deny any significant human contribution to global warming. The other one is silent. Kevin Cramer (R), the President of the North Dakota Public Service Commission, is running for reelection (six year terms), openly professes global warming might be a hoax. He is running against Brad Crabtree, the only candidate for state office stating that he believes it is real and poses an economic opportunity and risk to North Dakota. He is not getting the level of contributions from the fossil fuel industry. He would be the sane voice of scientific reason on the permitting commission. Want to do something to help --- flood the Crabtree for PSC treasury with contributions, showing that denying climate change comes at a political cost.
06:08 PM on 08/29/2010
We should be expanding nuclear reactors powered by thorium, this is the answer:

http://www.telegraph.co.uk/finance/comment/7970619/Obama-could-kill-fossil-fuels-overnight-with-a-nuclear-dash-for-thorium.html
10:24 PM on 08/22/2010
Daniel Scott (in the last sentence) hit the nail on the head. It doesn't take a genius...
08:02 PM on 08/22/2010
These 30 coal plants have an equivalent number of wind turbines. An equivalent number of solar panels. Interesting that that information isn't common knowledge, yet.
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HUFFPOST SUPER USER
ReedYoung
global mean temperature, obviously INCREASING
10:22 PM on 08/19/2010
From 1943 to 1999 the U.S. government paid nearly $151 billion, in 1999 dollars, in subsidies for wind, solar and nuclear power, Marshall Goldberg of the Renewable Energy Policy Project, a research organization in Washington, wrote in a July 2000 report. Of this total, 96.3 percent went to nuclear power, the report said.

Still, these costs pale in comparison with the financial risks and subsidies that are likely to accompany the next wave of nuclear plant construction, Mr. Cooper said.

A November 2009 research report by Citigroup Global Markets termed the construction risks, power price risks, and operational risks “so large and variable that individually they could each bring even the largest utility to its knees.”
http://www.nytimes.com/2010/07/27/business/global/27iht-renuke.html?pagewanted=2&_r=1

So nuclear energy corporations have had a fair chance, plus a whole lot more. It's time for solar and wind to get full parity with government subsidies to nuclear energy, or much more than nuclear power, to achieve *historical* parity within five years.
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HUFFPOST SUPER USER
ReedYoung
global mean temperature, obviously INCREASING
10:50 PM on 08/19/2010
Those risks were mentioned in a 2009 report by the credit rating agency Moody’s. “Moody’s is considering taking a more negative view for those issuers seeking to build new nuclear power plants,” the report said. “Historically, most nuclear-building utilities suffered ratings downgrades — and sometimes several — while building these facilities. Political and policy conditions are spurring applications for new nuclear power generation for the first time in years. Nevertheless, most utilities now seeking to build nuclear generation do not appear to be adjusting their financial policies, a credit negative.”

Adding to the risks facing any reactor construction program, only one of five proposed designs under consideration by U.S. utilities has ever been built, the Nuclear Regulatory Commission said.

“No one has ever built a contemporary reactor to contemporary standards, so no one has the experience to state with confidence what it will cost,” said Stephen Maloney, a utilities management consultant. “We see cost escalations as companies come up the learning curve.”

Market risk has been heightened by the recent recession. “The current crisis has decreased energy demand even more than the 1970s oil price shocks,” Mr. Cooper said. The recession “appears to have caused a fundamental shift in consumption patterns that will lower the long-term growth rate of electricity demand.”
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HUFFPOST SUPER USER
ReedYoung
global mean temperature, obviously INCREASING
10:54 PM on 08/19/2010
Mr. Cooper said the industry’s equanimity was based, at least partially, on the supportive cushion provided by loan guarantees and work-in-progress financing. “With such financing the utility is making a one-way bet, allowing it to make a profit even when the project fails,” he said. “The people bear the risks and costs; the nuclear utilities take the profits. Without loan guarantees and guaranteed construction work in progress, these reactors will simply not be built, because the capital markets will not finance them.”

Without public guarantees, nuclear projects often cannot get financing. AmerenUE, the Missouri utility, suspended in April 2009 plans to build a $6 billion, 1,600-megawatt reactor at its Callaway County nuclear site, after trying unsuccessfully to get the State Legislature to repeal a longstanding ban on work-in-progress financing. The continued existence of the ban “makes financing a new plant in the current economic environment impossible,” the utility said.

Similarly, Florida Power and Light said in January that it would not proceed beyond licensing with plans to build two new reactors at its Turkey Point site, after the Florida Public Service Commission rejected its request to pass on a $1.27 billion cost increase to its users.
10:58 PM on 08/19/2010
Even if true, which is unlikely this is nothing compared to the renewable subsidies of $45B last year and $hundreds of billions in years previous.

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a5.20kg0SOY0

Didn't Citibank go broke? Oh right, we no was it Big Oil bailed them out. I certainly wouldn't trust there investment advice. Would you?

There only risk is if the greenies at the NRC can shut but so much red tape in the way, that the nukes can't be built.

There are 57 nuclear reactors being built around the world, another 140 ordered and a further 150 proposed for 2020, - only one in US. No problems with finance there. Do you think Americans will let some greenie attorneys at the NRC make them the world's laughingstock.

Solar and wind power have been used for thousands of years nothing new there. Wind and solar today produce no net energy because they waste natural gas on low efficiency NG load balancing units. No GHG's saved. So why waste another nickel.

There are no current nuclear subsidies. If there were any in the past, we already paid the subsidies so why not enjoy them.
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ReedYoung
global mean temperature, obviously INCREASING
04:11 PM on 08/21/2010
No, Big Oil and Citigroup and Wachovia and many more failed speculator corporations were all bailed out by me and other honest, hard-working taxpayers.
12:54 PM on 08/19/2010
Well if this plant is going to produce emissions equivalent to 22 million cars…no problem let’s just take 22 million cars off the road…let’s start with 22 million Republican cars (they will be of course all be SUV’s and Hummers if they could still get them) and see how that works out…

I think seeing 22 million Republicans walking to work or having to ride on mass transit would be awe-inspiring…
12:05 PM on 08/20/2010
Great picture to visualize, thanks!
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HUFFPOST SUPER USER
Michael Mann
Nuclear Educator
11:06 PM on 08/18/2010
It's a matter of time; coal is a short term, short time frame profit, nuclear is a long term investment in a prosperous future.
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HUFFPOST SUPER USER
ReedYoung
global mean temperature, obviously INCREASING
06:02 PM on 08/19/2010
Who Pays for New Nuclear?
A number of tradition-oriented utility executives have persisted in pursuing nuclear plant
licenses. Some have even begun to raise rates in the process, as Duke Energy did in 2009 in order to cover “pre-development” costs of its proposed Lee nuclear plant in South Carolina.

Utility CEOs are well aware of the enormous risks and financial commitments of this business strategy. That is why those who are still considering new nuclear plants are seeking to shift costs to taxpayers through federal loans and loan guarantees, and to electricity consumers through state legislation allowing immediate recovery of planning and financing charges through electric rates.9 In normal circumstances, they would accumulate these costs and recover them in rates once plants are completed and actually producing electricity.

The economic irony is that rising rates inhibit the projected demand on which the supposed need for the plants is based.
http://www.ncwarn.org/wp-content/uploads/2010/07/NCW-SolarReport_final1.pdf
page 7
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ReedYoung
global mean temperature, obviously INCREASING
06:04 PM on 08/19/2010
Figure 2 tracks the downward trend in solar PV electricity costs from 1998 to 2008. According to researchers at the Lawrence Berkeley National Laboratory, solar photovoltaic system costs declined from $12 per installed watt in 1998 to $8 in 2008 on average — a one-third decline in ten years. In 2009 and 2010, costs declined more rapidly as module prices fell sharply, bringing the 12-year system cost decline to 50%. At mid-2010, based on figures provided by North Carolina installers, large systems can produce electricity at 12–14 cents or less per kilowatt-hour, while the middle range
for residential systems comes in at 13–19 cents per kilowatt-hour, hence the average cost shown in Figure 1 of 16 cents.5 The possibility of selling renewable credits tilts the advantage farther in the direction of solar electricity.
(Ibid., page 6 - 7)
09:23 PM on 08/19/2010
Everybody except TVA which will have no trouble getting finance for their nuke because it's efficient public power raising money through tax exempt bonds. American Pirate utilities need a 12 % rate of return on investment so their capital costs are nominally at least double per kwh.
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John Mainstream
I'm a Clinton Democrat that is now an independent.
08:01 PM on 08/18/2010
Although the use of coal would not significantly impact the rate of sea level rise for another 50 years according to the UN panel, acid rain remains an immediate concern. For the time being, the EPA needs to focus on reducing environmental damage caused by the increased use of coal.
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worker beenumbed
05:09 PM on 08/18/2010
Mercury is not mentioned in the article.Mercury vaporizes from the coal powder .Then it condenses onto the ash that is still asending from the stack at the Michigan City power plant.The ash decends into the food chain.Let the Clinton tax rates return for the rich to finance wind turbines.Reduce the cap on individual campaign contriutions fom the current $115000 per election cycle
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HUFFPOST SUPER USER
ReedYoung
global mean temperature, obviously INCREASING
07:33 PM on 08/18/2010
And end all tax exemptions on gross income over $1 million.
http://www.huffingtonpost.com/jonathan-tasini/the-bigger-shame-the-rich_b_162485.html
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HUFFPOST SUPER USER
ReedYoung
global mean temperature, obviously INCREASING
03:23 PM on 08/18/2010
Solar is also cheaper than nuclear, so let's have $35,000,000,000 ($35Billion) for that as well, right now.
http://inhabitat.com/2010/07/29/solar-power-is-cheaper-than-nuclear-for-the-first-time/
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HUFFPOST SUPER USER
Bryan Elliott
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HUFFPOST SUPER USER
ReedYoung
global mean temperature, obviously INCREASING
10:53 PM on 08/18/2010
Somebody reputable run atomicinsights.blogspot?
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HUFFPOST SUPER USER
ReedYoung
global mean temperature, obviously INCREASING
02:41 PM on 08/18/2010
Like it or not, coal is not going anywhere until its all gone.
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BannedNBoston
Is hemp legal yet?
01:45 PM on 08/18/2010
Russia has a new CO2 dividing solar panel.
when the sun hits it the CO2 is attracted to the solar panel
and is electronically separated!
The carbon falls of the backside into a hopper going into the ground!
The oxygen is released into the air!!

NOT
HUFFPOST SUPER USER
sloreader
writ this down
10:44 AM on 08/18/2010
Inexcusable.
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HUFFPOST SUPER USER
Carolab
Just another hostage of the poopy heads
04:02 AM on 08/18/2010
Coal makes up 70 percent of China’s total primary energy consumption, and China is both the largest consumer and producer of coal in the world.
This user has chosen to opt out of the Badges program
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01:04 PM on 08/18/2010
Doesn`t matter carolab.America is the only bad guy on any issue about energy.
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HUFFPOST SUPER USER
ReedYoung
global mean temperature, obviously INCREASING
04:40 PM on 08/19/2010
I don't expect Chinese policy to reflect my interests. I do expect my country's policy to respect what I want and not only pander to corporate interests.
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HUFFPOST SUPER USER
Bryan Elliott
09:12 PM on 08/18/2010
China is also in the process of building 100 nuclear plants to try and decommission its coal fleet. The pollution concerns prior to the Bejing Olympics was a huge wakeup call to them.
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HUFFPOST SUPER USER
Carolab
Just another hostage of the poopy heads
09:57 PM on 08/18/2010
I think we need more nuclear power here.
08:27 PM on 08/17/2010
There is HOPE! Coal will never be clean but a company called Calera (calera.com) has a viable carbon sequestration process which IS being implemented as we speak. Whether or not it is scalable is to be determined. They take CO2 and other flue gases from the coal burning power plants and sequester the gases. Through a proprietary process they then create a cement-like filler which can be added to traditional Portland Cement to further reduce CO2 production in the cement industry. Double sided sword if you ask me.

Another key issue being overlooked is the destructive nature in which coal is being extracted, however, that's an entirely separate issue.

Our only real hope is to consume less. Value what we have and conserve. But seriously, check out Calera.
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BannedNBoston
Is hemp legal yet?
09:38 PM on 08/17/2010
Well remember a while back it was going to be WALLBOARD?
It would be like Chinese wall board full of sulfur, lead and mercury.
One question does the process release the O2? and just the carbon is trapped?
We dont need more O2 gone.
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HUFFPOST SUPER USER
Bryan Elliott
09:13 PM on 08/18/2010
What we need is a *replacement* for coal.

Oh wait, we have one. Nuclear power? Yes, please.
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HUFFPOST SUPER USER
ReedYoung
global mean temperature, obviously INCREASING
12:02 PM on 08/19/2010
Because it works by superheating a fluid, concentrating solar power (CSP) also continues to generate electricity ~7 hours after sunset. Modest improvements (financially) to the electric grid would ensure that a modest number of geographically separated wind farms would provide more than adequate baseload power in the low-consumption pre-dawn hours. Yes, baseload.