Coal-fired units would be replaced with natural gas-fired units
MINNEAPOLIS--(BUSINESS WIRE)--
Xcel Energy (NYSE: XEL) today asked Minnesota regulators to approve a
certificate of need for a project to retire its last two coal-burning
units (Units 3 and 4) at the Black Dog plant in Burnsville, Minn., and
replace them with natural gas-burning units. Units 1 and 2 were
converted to natural gas combined-cycle operation in 2002.
“We propose to use the existing Black Dog plant site to meet our
customers’ energy needs in the most cost-effective way possible,” said
Judy Poferl, president and CEO of Northern States Power Co.-Minnesota,
an Xcel Energy company. “Repowering this plant with state-of-the-art
natural gas technology is more economical than any of the alternatives
available to us, makes great use of an existing plant site and existing
transmission resources and will help meet our customers’ needs in an
environmentally sound manner. The project presents a great opportunity
to modernize our power supply in a way that takes advantage of Black
Dog’s unique location and the infrastructure that has developed there
over time.”
The repowering project calls for construction of a combined-cycle
facility on the Black Dog site, separate from the main building. The new
facility will include two combustion turbines, two heat recovery steam
generators and a steam turbine generator located in what is now the
plant’s coal yard. Integrating combustion turbine and steam turbine
technology provides an extremely efficient electricity production
process. Combined-cycle technology is about 50 percent more efficient
than the existing traditional steam plant. The project will include a
new substation and connection to the on-site 345 kilovolt transmission
lines. A higher capacity natural gas line will also be installed to
serve the facility.
The proposed Black Dog repowering project would replace the remaining
253 megawatts of coal-fired generating capacity at the site with about
700 megawatts of natural gas-fired generation. The project will provide
generating capacity that can ramp up and down quickly as demand for
electricity changes or production from wind turbines fluctuates with
wind speeds. In addition, replacing the coal-burning units with natural
gas-fired units will significantly reduce air emissions, including
mercury, sulfur dioxide, nitrogen oxides, fine particulates and carbon
dioxide.
The Black Dog proposal requires review and approval by various state
agencies, including the Minnesota Pollution Control Agency and Minnesota
Public Utilities Commission. As part of the certificate of need process,
independent power suppliers will have the opportunity to propose
alternative developments.
If the Black Dog project is approved, site preparation could begin in
2012 and foundation construction could begin in 2013. The new natural
gas powered facility is expected to cost approximately $600 million and
is proposed to come on line in 2016. The project will employ an
estimated 300 construction workers over the construction period.
Xcel Energy’s Black Dog repowering project is similar to the company’s
Minnesota Metro Emissions Reduction Project, which led to repowering the
High Bridge and Riverside plants from coal to natural gas and upgrades
to the Allen S. King plant. Combined with the previous emissions
reduction project, the conversion of the Black Dog plant supports the
utility’s overall goals to make strategic use of critical locations,
expand generating capacity, keep rates reasonable and reduce emissions
to meet environmental requirements.
The Black Dog plant has been generating power since 1952. By 1960 Black
Dog was NSP’s second largest base load plant. For more information
visit: Black
Dog Plant
Xcel
Energy (NYSE:
XEL) is a
major U.S. electricity and natural gas company that provides a
comprehensive portfolio of energy-related products and services to 3.4
million electricity customers and 1.9 million natural gas customers
through its regulated operating companies in eight
Western and Midwestern states. Company headquarters are located in
Minneapolis. More information is available at www.xcelenergy.com
Source: Xcel Energy
Contact:
Xcel Energy Media Relations
612-215-5300
www.xcelenergy.com