About

In the summer of 2009, Jasper Municipal Utilites (JMU) engaged Black and Veatch to assess the condition of the plant, determine the value of the plant, and to review alternatives to convert the coal plant to use biomass. The results of that study indicated that it was not economic for JMU to either mix wood with its coal fuel or to convert the plant to use wood entirely given the price for power in the wholesale power markets. The condition of the plant was determined to be exceptional due to the excellent maintenance performed over its lifetime. However, the effort to place a value on the plant did not provide any conclusive results. It was decided to test the market to determine if the plant had value.

JMU in the spring of 2010 sought expressions of interest from third party developers as to options for the use of the coal plant. JMU received sufficient interest from enough parties to move forward with a request for Proposals. JMU received multiple responses and is in the evaluation stage of what to do with the coal plant. As part of the Proposal Evaluation Process JMU has provided the community a copy of the non-commercially sensitive information contained in the Proposal submitted by TOC and has solicited community comments. JMU in its Request for Proposals indicated that it desires to conclude the determination of how to proceed with the existing coal plant and, if appropriate, enter into the required arrangements by the end April of this year.

JMU has determined at this evaluation stage that TOC has proposed the most attractive option in keeping with JMU’s guidelines.

TOC has proposed to Lease and repower the existing coal plant to change fuel, update the plant and environmental control equipment and to increase the output of the overall plant by installing a new natural gas fueled combustion turbine generator system.

The majority of the renewable energy in the US is generated by hydro electric facilities and biomass (wood). As the US strives to reduce its dependence on coal as fuel for electric generation (50% of all electric energy is generated using coal) an increasing amount of wind generation and solar generation is being installed. In the Midwest the majority of new renewable energy generation is in the form of wind. Wind is an excellent source of renewable energy. Each Mega-Watt of electricity generated with wind eliminates the burning of approximately ½ ton of coal. Wind, however, is an unpredictable source of electric generation. The wind blows hardest at night when there is little need for electricity. Because the output of wind turbines varies with the speed of the wind they cannot be relied upon to supply electricity at any specific time of day. As more and more wind turbines are installed this problem becomes larger and larger. The Midwest Independent System Operator, the group responsible for maintaining a safe and reliable electric supply, often uses natural gas fueled combustion turbine based power plants to compliment the operation of wind turbine generators. The output of these natural fueled plants is easily adjustable and is used to “firm-up” the unpredictable nature of the wind. Biomass fueled electric generation is much like natural gas fueled generation in that it’s output is predictable and can be adjusted when needed.

TOC has been working with energy crop breeders, researchers, propagators and growers. The excellent combustion and sustainable properties of Miscanthus Giganteus (Miscanthus) make it an economically attractive biomass fuel source for the repowering of the JMU coal plant.