Coal news and updates

Alabama Power to close three coal-fired units, swap four to natural gas

Alabama Power Co. has followed a steady trend of cutting its coal use, and efforts will soon ramp up to meet new federal standards.

The Environmental Protection Agency and U.S. Department of Justice on Thursday lodged a proposed modification to a previous decree with Alabama Power that will secure further reductions in emissions from three of the company's coal-fired plants in Alabama, according to a release from the EPA.

The reductions will by achieved by Alabama Power converting four coal-fired units to natural gas, retiring three others and employing new state-of-the-art pollution control devices.

Michael Sznajderman, a spokesman for Alabama Power, told the Birmingham Business Journal on Thursday that about 200 positions are being reduced across Alabama Power’s system because of changes to facilities.

"We expect to reduce the positions over time through retirements, transfers and attrition, and do not expect any layoffs," he said.

Alabama Power closed two coal-fired units at the Walker County power plant in August 2014 , in addition to announcing it would cease using coal at others. The company blamed federal regulations handed down by the EPA for the closures.

The company will also pay a $100,000 penalty, and spend at least $1.5 million on providing electrical charging infrastructure for electric airport service vehicles and passenger cars.

The settlement is a component of the EPA's nationwide enforcement initiative to control potentially harmful emissions - primarily from coal-fired power plants. The plans fall under the Clean Air Act's Prevention of Significant Deterioration requirement.

“This action secures reductions of harmful air pollution at Alabama Power Company’s coal-fired power plants across the state,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “This is important progress toward our commitment to cut emissions from the largest sources, and means cleaner air and improved public health for communities across Alabama.”

Historically, the company has had six plants that use coal for all or part of their fuel mix.

"We are also reducing the number of coal units at Plant Barry in Mobile County, Plant Gaston in Shelby County and Plant Gorgas in Walker County, and switching some units to natural gas at Barry. Moving forward, coal will continue to be a source of fuel at four plants: Barry, Gorgas, Gaston and Plant Miller in Jefferson County," Sznajderman said.

Plant Gadsden – formerly a coal-fired facility – is now using natural gas exclusively. Plant Greene County is also expected to move exclusively from coal to natural gas next year.

Natural gas will play a key part in energy production for the company moving forward, in addition to the possible use of renewables.

Coal mined in Alabama has played a major role in Alabama Power's past operations, with approximately 25 percent of the coal burned by the company coming from in-state.

Of all sources of generation for Alabama Power in 2014, coal comprised 54 percent, which was slightly lower in the first quarter of 2015 at 47 percent, Sznajderman said.

"We will continue to assess the situation as new regulations come into play," he said. "Certainly, new or more stringent regulations may have an effect as far as further driving up the costs to operate some of our units."

source: http://www.bizjournals.com