Moundsville will be first U.S. power plant to burn ethane

February 17, 2015 | By

A final order from the West Virginia Public Service Commission approving the siting certificate for Moundsville Power, LLC to construct a 549 megawatt combined-cycle natural gas power plant in Marshall County will allow the utility to proceed to the financing phase of this project -- one that promises to be a first in the industry.

The Moundsville Power facility will be a wholesale generator for the PJM grid, of which West Virginia is one of 13 states -- and the first power plant in the United States to burn ethane. Ethane is a chemical compound isolated on an industrial scale from natural gas and is a byproduct of petroleum refining, which at standard temperature and pressure is a colorless, odorless gas. Unlike petroleum, ethanol is a renewable fuel source.

Built on a 37-acre portion of land south of Moundsville, a site that previously held the Allied Chemical Plant, the plant will utilize $105 million of natural gas and ethane annually sourced from West Virginia producers and processors.  Located in the center of the Marcellus and Utica shale formations, and located within seven miles of three interstate pipelines, the plant has direct access to low-priced gas from numerous providers. 

Once operational, in early 2018, the plant is expected to be the largest user of natural gas in the state and the first in the U.S. to burn ethane.

In addition to setting an industry first, the project is anticipated to have a huge economic impact on the area. According to an economic impact study performed by Witt Economics, LLC, in addition to averaging more than 400 construction jobs during the estimated 30-month construction period, the project will have an annual economic impact during construction in excess of $815 million. Further, the power plant will have an annual operating impact of more than $283 million. 

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