Supporting a New Generation of Power
Hampton Township, Michigan Clean Coal Plant Project
Consumers Energy plans to expand its Karn/Weadock Generating Complex near Bay City, Mich., by building a new 830-megawatt (MW) advanced supercritical pulverized clean coal power plant. The facility, slated to begin operating in 2017, will feature the latest technology to control emissions.
Consumers Energy expects to use approximately 519 MW of electricity from the plant to serve its customers. Other parties will own stakes in the new unit and use about 311 MW of its output.
The plant will cost more than $2 billion. Consumers Energy’s share of that cost will be in proportion to its ownership interest.
The Site
Consumers Energy investigated more than 100 potential sites in Michigan for the location of the 830-MW plant. Critical factors in evaluating sites included access to rail, water and existing transmission assets. Consumers Energy’s Karn/Weadock Generating Complex proved to be the best location, due to:
- Multiple coal delivery options, including rail and water
- More efficient use of existing infrastructure and resources than a greenfield site
- Existing transmission access
- Proximity for serving customer load
- The 2,400-acre site offers room for expansion, including future carbon-capture technology as it becomes available
- Supportive local community
Need for Power
Consumers Energy’s Balanced Energy Initiative recognizes that customers in Michigan are using more electricity every year and its power generation fleet is aging. Overall customer demand for electricity keeps growing despite Michigan’s current economic problems. The typical customer uses 8 percent more electricity today than 10 years ago due to increased usage of air conditioning and other electrical appliances.
In general, the company’s current forecast is driven by projections that Michigan’s manufacturing activity will fall, population will continue to decline, and housing supply will continue to significantly exceed demand. The forecast also excludes the potential for increasing demand associated with plug-in hybrid and electric vehicles.
Eventually, Michigan’s economy will improve and its growing alternative energy manufacturing sector requires reliable and affordable baseload power to operate. We must build for tomorrow’s economy not today’s, particularly because constructing a new baseload power plant takes seven to eight years.
Consumers Energy’s existing coal-fired baseload generating fleet — averaging 50 years of age — is the oldest in the country. A number of units are nearing the end of their useful life. While these aging plants have performed well and continue to be an important part of the company’s diverse generating portfolio, the Balanced Energy Initiative calls for a regular evaluation of the underlying economics of these units.
Why Coal?
Michigan’s energy security and reliability depend on a stable and diverse fuel supply — including hydro, natural gas, renewable and new advanced coal technologies — that offers the most reliable and competitively priced energy in today’s market. For baseload generation, coal offers “the triple A” advantage:
- Abundant-Coal is the most abundant natural resource in the United States. Supply reserves exceed 250 years — more than Saudi Arabia’s oil reserves
- Affordable-Because of coal’s price advantage, Consumers Energy already uses this fuel to meet more than 50 percent of customer needs in Michigan
- American-Coal is from American sources making the country less dependent on foreign energy supplies
Coal is an important component of a balanced resource portfolio that will continue to be a significant factor in U.S. power generation due to its reliability, affordability and positive impact on energy security. The proposed clean coal facility will eventually replace older, less efficient plants to help reduce the company’s carbon footprint. The new unit will employ state-of-the-art technology to reduce generation costs and emissions and is designed to accommodate carbon capture and sequestration (“CCS”) technology when it becomes available.
American Coalition for Clean Coal Electricity
