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16 July 2008 -- The New York Power Authority is halting plans for a clean-coal facility at the Huntley plant in western New York. NYPA officials say the electricity produced by the plant would be too expensive because of the integrated gasification combines cycle (IGCC) technology involved.
The state gave conditional approval to the $1.5 billion project 18 months ago and has been in talks with New Jersey-based NRG Energy since then to find ways to bring down costs. NYPA spokeswoman Christine Pritchard told the Associated Press those efforts did not result in enough of a cost reduction to continue with the project.
In early 2007 NRG Energy received a conditional award from NYPA to build the 680 MW IGCC at its existing Huntley plant site in Tonawanda, N.Y. The project was scheduled to go into commercial operation in 2013. NRG was also decommissioning four of the six coal-fired generating units at the Huntley station in line with a 2005 settlement to reduce emissions of sulfur dioxide (SO2) and nitrogen oxides (NOX).
The award was conditional because IGCC cost is about 20 percent more than the current market price for a new pulverized coal coal plant. NRG and NYPA planned to pursue tax credits or other federal and/or state funding sources to bridge the cost gap.
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