NRG seeks to build New York IGCC facility

Answering a call from the New York Power Authority to develop clean-coal power facilities, NRG Energy recently submitted a proposal to build a 680-MW integrated gasification combined-cycle plant at its 522-MW Huntley facility in western New York.

The company has also signed a memorandum of understanding with El Paso Corporation to identify, create, develop and implement commercial carbon capture and sequestration solutions.

"The MOU is geared toward developing technology to be used at the proposed Huntley facility," Bruce Connery, vice president of investor and public relations, told Platts.

"If our proposal is accepted, our new IGCC plant will provide much-needed baseload generation to the state of New York," David Crane, NRG president and CEO, said in a statement. "IGCC has the added benefit of helping stabilize electricity prices in the state now and in the future because it uses coal [which] will ease New York's reliance on volatile and high-priced natural gas."

The facility would have the ability to capture up to 65% of the carbon dioxide produced, the company said.

Under the Advanced Clean Coal Power Plant Initiative that Governor George Pataki announced in his 2006 state address, the New York Power Authority established a Clean Coal Initiative Fund of $10 million/year for five years for a total of $50 million. The money is to be awarded to the winning proposal for building an IGCC facility at a brownfield site or at an existing power plant facility. Under the terms of the initiative, NYPA will enter into a power purchase agreement with the developer.

The winning proposal and site will be announced in December.