Construction Begins on New NRG Natural Gas Peaking Plant near Houston
05 November 2014 - 11:15PM
Business Wire
—Units to Provide 360 Megawatts of Fast-Start
Power to the Region When Use Is High—
NRG Energy, Inc. (NYSE:NRG) today announced that construction
has begun on an approximately 360 megawatt1, natural gas-fired
peaking plant at a site near Bacliff, Texas, southeast of Houston.
When completed, the units will produce enough electricity to power
an additional 72,000 Texas homes when needed most during times of
peak demand.
“NRG is working hard to meet the electricity needs of the
Houston area today and in the future as our region continues to
grow,” said John Ragan, executive vice president of NRG and
president of NRG’s Gulf Coast Region. “The Houston area and, in
fact the entire state, is challenged with shrinking reserve
margins. Rather than building costly new transmission lines and
impacting hundreds of private property owners, NRG is investing in
new generation, close to the homes and businesses that need it.
This is the most efficient, cost-effective way to ensure
reliability for this region.”
The new facility will be located on a 230-acre site which was
once part of the former PH Robinson power plant. It will use
natural gas to power six GE 7E, economical, fast-start combustion
turbines. The units require no water for cooling making them
well-suited to operate in water-constrained Texas. With their
fast-start capability, the peaking units have the potential to help
integrate renewable power from intermittent wind and solar
generation into the ERCOT grid. The air permitting process began in
2013 and was granted by the Texas Commission on Environmental
Quality in August 2014.
The project will benefit from a number of unique advantages
which allow NRG to construct the project at a cost of approximately
$400 per kilowatt, a significant discount to typical new build
costs. Specifically, the gas turbines will be relocated from a site
in New Albany, Mississippi to the Houston area at a location NRG
already owns and is immediately adjacent to the switchyard where
they expect to connect to the transmission grid.
“While Texas needs this additional, flexible power, the low
price of power in the state makes it very difficult to finance and
build new power plants,” added Ragan. “We have worked hard to make
these units economic so that we can add them with no ratepayer
dollars involved.”
The facility will be built by a partnership between BTEC
Turbines and Rockland Capital, the current owners of the New Albany
plant. BTEC is experienced in upgrading and relocating gas
turbines. For the Bacliff project, BTEC will perform the
engineering, procurement and construction of the new power plant
which includes the dismantling and shipment of the turbines from
Mississippi. The plant is expected to be transferred to NRG upon
completion. BTEC estimates the plant will generate approximately
200 jobs at the peak of construction and is anticipated to be
completed in late 2015.
In addition, NRG is in final stages of the permitting process
for two large natural gas-fired plants in the Houston region. The
company has been granted a permit from the Texas Commission on
Environmental Quality for a new 850 megawatt combined cycle plant
and expects to receive environmental permits for a second 850
megawatt facility in early 2015.
“When economics allow us to build these additional units, NRG
wants to be ready to bring them online as quickly as possible to
meet the growing demand in Houston with new natural gas plants,”
Ragan added.
About NRG
NRG is leading customer-driven change in the U.S. energy
industry by delivering cleaner and smarter energy choices, while
building on the strength of the nation’s largest and most diverse
competitive power portfolio. A Fortune 250 company, we create value
through reliable and efficient conventional generation while
driving innovation in solar and renewable power, electric vehicle
ecosystems, carbon capture technology and customer-centric energy
solutions. Our retail electricity providers serve almost 3 million
residential and commercial customers throughout the country. More
information is available at www.nrg.com. Connect with NRG
Energy on
Facebook and follow us on Twitter @nrgenergy and
@NRGMedia.
Safe Harbor Disclosure
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such forward-looking
statements are subject to certain risks, uncertainties and
assumptions and include NRG’s expectations regarding the Bacliff
facility and permitting for new facilities in the Houston region
and forward-looking statements typically can be identified by the
use of words such as “expect,” “believe,” and similar terms.
Although NRG believes that its expectations are reasonable, it can
give no assurance that these expectations will prove to have been
correct, and actual results may vary materially. Factors that could
cause actual results to differ materially from those contemplated
above include, among others, general economic conditions, hazards
customary in the power industry, competition in wholesale power
markets, the volatility of energy and fuel prices, failure of
customers to perform under contracts, changes in the wholesale
power markets, changes in government regulation of markets and of
environmental emissions, and our ability to achieve the expected
benefits and timing of our projects. NRG undertakes no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. The
foregoing review of factors that could cause NRG’s actual results
to differ materially from those contemplated in the forward-looking
statements included in this news release should be considered in
connection with information regarding risks and uncertainties that
may affect NRG’s future results included in NRG’s filings with the
Securities and Exchange Commission at www.sec.gov.
1 Represents average annual peaking capacity
NRG Energy, Inc.Media:Dave Knox, 832-357-5730Pat Hammond,
713-537-2157orInvestors:Chad Plotkin, 609-524-4526
NRG Energy (NYSE:NRG)
Historical Stock Chart
From Apr 2024 to May 2024
NRG Energy (NYSE:NRG)
Historical Stock Chart
From May 2023 to May 2024