Desert Rock denied $450 million in stimulus
funds
Dec 8 - McClatchy-Tribune Regional News - James Monteleone The Daily
Times, Farmington, N.M.
Developers of the Desert Rock power plant are looking for alternate
funding options after the U.S. Department of Energy denied the project's
bid for $450 million in stimulus money to implement carbon-capturing
pollution controls.
Developers of the 15-megawatt power plant proposed to be built 25 miles
southwest of Farmington said the project remains viable, despite its
omission from the Department of Energy's carbon capture and
sequestration pilot project grants announced Friday.
"We're still pushing forward. Everybody has still got their hands around
this trying to figure out what the best way to do it is," said Doug
MacCourt, an attorney representing the Navajo Nation and the Desert Rock
development.
However, opponents of the power plant development said the Department of
Energy decision underscores a range of problems with Desert Rock and
suggests a finding that the project isn't feasible.
"It doesn't look good for the Desert Rock project. I don't see how they
could possibly find more funds or expect the Navajo Nation to pay the
remaining (expense)," said Dailan Long, with the anti-Desert Rock group
Dine Citizens Against Ruining Our Environment. "It should be a signal
for them (Navajo Tribal Council) to pull out and dump the whole
project."
Following the U.S. Environmental Protection Agency's request to repeal
Desert Rock's air quality permit in April, the project began engineering
the Carbon Capture and Sequestration model, designed to
further cut greenhouse gas pollution at a significantly higher cost.
Desert Rock proponents, which include the Texas-based company Sithe
Global and the Navajo Nation, initially budgeted to pay $1.05 billion to
implement the improved pollution-cutting technology.
The request for $450 million in stimulus funds would have paid
approximately 43 percent of the carbon-capture system costs.
Desert Rock, which requested more stimulus dollars than any of the three
projects awarded in the government's carbon-capture grants, was told by
the Department of Energy that funds were denied because the application
had paperwork problems, MacCourt said.
"It certainly can't be construed as some kind of determination that the
project's not feasible," MacCourt said.
Project developers are looking for potential appeals to the Department
of Energy award decision, he said.
Considering the increased government regulation of fossil-fuel power
generation, Desert Rock likely will have to find an alternative way to
fund the carbon-capture technology if the project will move forward,
said Nathan Plagens, vice president of the Desert Rock Energy Company.
"We're looking at all options. I can't say one option over the other
specifically at this time. It's a matter of your product, it's a matter
of your costs and it's a matter of if you have people that are willing
to buy it," Plagens said.
Given the ongoing restrictions being added to emissions standards
nationwide, Desert Rock likely will wait to see how the politics play
out before continuing the permitting process, he said.
"By no means is the project dead," Plagens said. "There's still some
basis of this project being technically sound, but going forward, you've
got to figure out and muddle through ... the politics and potential
regulations."
James Monteleone:
jmonteleone@daily-times.com
(c) 2009,
McClatchy-Tribune Information Services
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