Prairie State Energy Campus

Prairie State Energy Campus is a 1,600 megawatt base load, coal-fired, electrical power station and coal mine near Marissa, Illinois, southeast of St. Louis, Missouri. Prairie State Energy Campus (PSEC) features low levels of regulated emissions compared to other coal-fired power stations, capturing sulfur from high-sulfur coal mined nearby instead of transporting low-sulfur coal from elsewhere.[1][2][3]

Ken Bone, a power plant worker who asked a question during a 2016 Presidential debate, is employed at Prairie State. He is a Control Room Operator.[4]

Project

Proposed and led by Peabody Energy Corporation, the project is jointly owned by public electric utilities with Peabody initially retaining 5% ownership.[5] It is operated by Prairie State Generating Company, LLC. The first 800 MW generator went online in June[6] and the second in November 2012.[7] The project's Lively Grove underground mine was constructed to produce 6 million tons of high sulfur coal per year.[8] In 2019 it was the 26th largest coal mine in the country, producing 6.4 million short tons of coal.[9]

PSEC stated it will be "among the cleanest major coal-fueled plants in the nation"[10] through use of pollution mitigation technology, producing as low as one-fifth the levels of regulated pollutants as typical U.S. coal-fired plants.[2] Noting that projected emissions nevertheless include 25,000 tons of soot and smog-forming pollutants yearly, the Sierra Club and other organizations unsuccessfully sued to stop the EPA granting an air permit.[11]

As of 2/6/2019, the plant's ownership consists of nine municipal public power agencies including American Municipal Power, Inc. (23.3%), Illinois Municipal Electric Agency (15.2%), Indiana Municipal Power Agency (12.6%), Missouri Joint Municipal Electric Utility Commission (12.3%), Prairie Power Inc.(8.2%), Southern Illinois Power Cooperative (7.9%), Kentucky Municipal Power Agency (7.8%), Northern Illinois Municipal Power Agency (7.6%), Wabash Valley Power Association (5.1%).[12]

Carbon dioxide emissions

During construction the Chicago Tribune asserted PSEC would be the "largest source of carbon dioxide built in the United States in a quarter-century."[5] The company projected a 15% reduction in carbon dioxide pollution compared with other coal-fired power plants based on its use of efficient supercritical steam generators and no emissions from transporting coal.[13]

Judging that regulatory limits on carbon emissions were not likely in the near future, Peabody chose not to employ a more expensive integrated gasification combined cycle design that could more easily be retrofitted with carbon capture technology.[14] The Environmental Protection Agency first proposed limits in March 2012. The limit of 1000 lbs emissions per megawatt-hour electricity would require future coal-powered generating stations to capture approximately half of their output. The limit would not apply to existing and under-construction generating stations, including PSEC.[15]

In 2020 PSEC was among the ten largest industrial sources of in the United States. The Biden administration took office with a platform of transitioning US electrical generation to net zero emissions by 2035. At the 2035 target date the plant will still have decades of expected lifespan remaining.[16][17]

A 2021 Illinois law requires PSEC plus one other municipally owned coal power station to reduce their carbon emissions by 45% by 2035 and become carbon-free by 2045. Other coal and oil-fired power stations in Illinois over 25 MWe must become carbon-free by 2030, and natural gas plants by 2045.[18][19]

Costs

PSEC started delivering electricity in 2012 at prices well above market rates.[6] Some of its investors resell the energy at a loss, some raise consumer rates, and two backed out of the project.[6] PSEC's original $2 billion estimated cost attracted municipal electric utilities to invest and to sign 28 year contracts. However, as of early 2010 the estimated cost had increased to $4.4 billion, requiring investors to borrow more money and raising the projected cost of electricity to undesirable levels.[5][20] Peabody in response capped construction costs at "approximately $4 billion" excluding some costs such as coal development and transmission lines.[20][21] In January 2013, with many municipalities adversely impacted by the high prices, the SEC subpoenaed information from Peabody.[22] In a bid to exit its share of the Prairie State project, the City of Hermann, Missouri, filed a lawsuit in March 2015 against the Missouri Joint Municipal Electric Utility Commission and the Missouri Public Energy Pool, claiming that its share of $1.5 billion in debt issued to support Prairie State imposed an unconstitutionally high level of debt on the city.[23]

Peabody divested its 5.06% stake in the project in 2016, accepting $57 million for its original investment of nearly $250 million. The buyer was Wabash Valley Power Association, a Midwest cooperative.[24][25]

See also

  • Longview Power Plant

References

  1. Jeffrey Tomich. Prairie State fuels debate: Coal-fired power plant will bring jobs but symbolizes fight over climate change St. Louis Post-Dispatch, January 5, 2010, retrieved 5 October 2010^
  2. US: Prairie State coal-fueled power plant advances EnerPub Energy Publisher, retrieved 5 October 2010^
  3. William Poe. King Coal Mounts a Comeback St. Louis Commerce Magazine, April 2004, retrieved 6 October 2010^
  4. Katie Herzog. Ken Bone: "If I was Energy King …" Grist, October 14, 2016, retrieved October 20, 2017^
  5. Michael Hawthorne. Clean coal dream a costly nightmare Chicago Tribune, July 12, 2010, retrieved 19 September 2019^
  6. Jeffrey Tomich. Delays, cost overruns blemish Illinois coal project St. Louis Post-Dispatch, June 17, 2012, retrieved August 23, 2012^
  7. Moving Energy Forward: Prairie State's Unit 2 of Power Plant Goes Live Prairie State Energy Campus, November 2, 2012, retrieved March 17, 2013^
  8. New Illinois Mines Could Boost State’s Production Coal Age, 24 March 2011, retrieved 23 May 2011^
  9. Table 9. Major U.S. Coal Mines, 2019 U.S. Energy Information Administration, retrieved September 16, 2021^
  10. Clean Electricity from Coal Prairie State Energy Campus, retrieved 5 October 2010^
  11. Prairie State/Peabody Sierra Club, retrieved 18 October 2017^
  12. American Municipal Power, Inc. Prairie State Energy Campus Project Revenue Bonds Refunding Series 2019A retrieved September 16, 2021^
  13. PSEC Overview Prairie State Energy Campus, retrieved 5 October 2010^
  14. Simon Romero. 2 Industry Leaders Bet on Coal But Split on Cleaner Approach The New York Times, May 28, 2006, retrieved 6 October 2010^
  15. Renee Schoof. New EPA pollution rules won't apply to Lively Grove Belleville News-Democrat, Mar 28, 2012, retrieved April 11, 2012^
  16. Dinah Voyles Pulver. Biden’s climate crusade: How his plan to cut carbon emissions, create jobs could impact U.S. USA Today, January 18, 2021, retrieved 2021-01-22^
  17. Michael Hawthorne. Coal-fired power plant in southern Illinois a major obstacle to Biden’s push for carbon-free electricity by 2035 Chicago Tribune, January 21, 2021, retrieved 2021-01-22^
  18. Sebastien Malo. In Midwest first, Illinois bans fossil fuel electricity sources Reuters, September 9, 2021, retrieved 2021-09-21^
  19. Jerry Nowicki. House Passes Energy Bill With Labor, Environmental Groups On Board WGLT, September 10, 2021, retrieved 2021-09-21^
  20. Michael Hawthorne. Prairie State coal-fired plant to cap costs Chicago Tribune, July 24, 2010, retrieved 5 October 2010^
  21. Prairie State and Bechtel Announce New, Fixed-Cost EPC Agreement Providing Greater Economic Stability Prairie State Generating Company, LLC, July 22, 2010, retrieved 2010-12-30^
  22. Jeffrey Tomich. For tiny town, gamble on coal plant becomes a fiscal crisis St. Louis Post-Dispatch, March 11, 2013, retrieved March 17, 2013^
  23. Jacob Barker. Hermann, Mo., sues power commissions over Prairie State coal plant St. Louis Post-Dispatch, March 30, 2015, retrieved April 1, 2015^
  24. Curtis Tate. Peabody sells stake in Illinois power plant for fraction of investment McClatchy DC Bureau, January 22, 2016, retrieved October 29, 2017^
  25. Peabody Energy Completes Sale Of Interest In Prairie State Energy Campus Peabody Energy, May 19, 2016, retrieved October 29, 2017^