A Swiss firm is coming to the rescue to fill the United States’ looming shortage of power plants.
The company, Advanced Power AG, says it will finish construction of a large natural gas-fired power plant in Ohio in 2017, just as a number of coal power plants will be closing in response to federal environmental rules.
The construction of the gas-fired plant marks a switch from Ohio’s dependence on coal-fired electricity to more power plants fueled by natural gas, the Cleveland Plain Dealer first reported.
The switch is also indicative of a trend occurring across the country. The government’s Energy Information Administration recently said the nation’s use of natural gas to produce electricity is increasing.
Recently, Ohio-based American Electric Power — one of the country’s largest coal utilities — announced it would begin closing a number of its coal plants beginning next month. The closures would occur in four states, including Ohio, West Virginia and other coal-dependent states.
Another major utility, First Energy, also has shuttered coal plants in Ohio.
The closures are in response to the Environmental Protection Agency’s pollution standards for mercury and air toxics, which go into effect this month. Ohio also is suing the EPA over a proposed rule for curbing greenhouse gas emissions from power plants, which also is expected to shutter coal plants and drive the state to increased gas use.
Ohio and over a dozen states suing EPA argue that the agency does not have the authority to move ahead with the power plant rules. Critics also argue that the switch from coal to natural gas electricity would harm reliability.
The Swiss company’s natural gas power plant would be more efficient than a coal plant. It also would be cleaner, allowing for easy compliance with both EPA pollution and climate rules.
The company said it would make use of the state’s emerging natural gas industry. Ohio has its own natural gas shale formation, the Utica shale, which is being developed.
The nearby shale gas would create a secure, low-cost source of fuel for the power plant. Natural gas prices are at historical lows, making gas one of the most competitive sources of electricity in the country.
The company says gas from the Utica shale formation in eastern Ohio would help fuel the $899 million facility, according to regional news reports. The plant would produce 700 megawatts of electricity, which is enough to supply 750,000 homes with power. The project would create 700 construction jobs and 20 to 30 permanent jobs, according to the company.
The plant is slated to open near the end of 2017.
