NRG Energy scraps plans for Texas coal-fired plant citing low gas prices

Boston (Platts)--6Dec2012/121 pm EST/1821 GMT


NRG Energy is scrapping plans to build a third, 800-MW coal-fired unit at its Limestone station in Jewett, Texas, because of low natural gas price, the company said Thursday.

NRG spokesman David Knox said the company has voided the project's Texas Commission on Environmental Quality air permit. The permit would have expired this month if it were not extended for a second time, Knox said, adding that NRG determined that "in an era of $3 or $4[/MMBtu] gas the project no longer made economic sense."

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Knox said NRG continues to operate the two 800-MW units at Limestone that are fitted with scrubbers and electrostatic precipitators. NRG plans to add activated carbon injection to the two units by 2015 to comply with the federal Mercury and Air Toxics Standards, he said.

--Housley Carr, newsdesk@platts.com
--Edited by Jeff Barber, jeff_barber@platts.com