Power for the Northwest
Demand for electricity in Washington has increased steadily for the past 20 years, with the notable exception of 2001 when five major aluminum smelting plants were taken offline. Consumption today exceeds the peak usage when those plants were operating, and continues to grow. Common estimates for the annual load growth in the coming decade range from one to two percent. Energy Northwest anticipates load growth that mirrors economic development, likely in the 1.5% per year range. Over six years that equates to more than nine percent, or 1800 MW growth over present load base.
Meeting future electricity demand requires carefully planning today. Waiting for demand to materialize, before beginning work on new generation sources, will eventually leave the state short of reliable, affordable power and at the economic mercy of the volatile open power market.
Viable options for meeting future demand are limited. As essential and attractive as conservation and renewable sources are, the capacity of those measures falls far short of even the most conservative estimates of future demand. Traditional large scale generation sources, like hydro, nuclear, and combustion turbines are not viable solutions either. IGCC is perhaps the only large scale generation option that combines the affordability, reliability, and public support necessary to succeed in Washington today. Of particular importance, IGCC offers a real-world opportunity to pursue carbon dioxide sequestration. Even without guaranteed CO2 sequestration, IGCC plants best meet the combined needs of affordable, reliable power, and public support.
Integrated Gasification Combined Cycle plants offer multiple fuel options, low fuel costs, emissions similar to natural gas, and electricity costs approximately 40 percent lower than natural gas plants operating at $6.50/MMBTU.
The potential for carbon sequestration makes IGCC technology even more appealing and environmentally responsible. Energy Northwest’s proposed IGCC plant will be sequestration ready meaning it will be ready to capture and sequester CO2, when and if that technology becomes viable.
IGCC is the only thermal power option, excluding new nuclear plants, that effectively mitigates fuel price volatility while addressing current and future environmental concerns. An IGCC project’s fuel hedging capability stems from its ability to gasify any combination of natural gas, coal, and waste-products such as petroleum coke. These fuel options can be hedged and optimized to minimize cost of production creating unprecedented cost of power stability.
Recoverable U.S. coal reserves are estimated at 275 billion tons, an estimated 25% of the world supply. Predictions show U.S. coal reserves are capable of meeting domestic needs for more than 250 years. The share of world coal reserves is in sharp contrast to the US share of global oil and natural gas reserves estimated to be less than 2% and 3% respectively. Reliance on U.S. fuel feed stocks reduces the nation’s dependence on foreign energy supplies.
IGCC offers fuel hedging and an environmentally sound method to produce electricity. Energy Northwest’s proposal to build an IGCC plant is predicated on a Western Washington location. The majority of Washington’s power generation is located east of the Cascade Mountains, while the highest demand is on the west side of the state. Proximity to the load (population centers/industry) and transmission grid are key siting considerations. Building an IGCC power generation project near major Western Washington load centers will minimize transmission challenges and add stability to the transmission grid.
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