Backers pitch Cricket Valley Energy Center gas project in New York

Cricket Valley Energy Center LLC (CVE) is a developing a 1,000-MW, combined-cycle electric generating plant in Dover, N.Y., said a recent project proposal submitted to the New York Power Authority by the project backer.

This is one of many proposals taken in by the authority under the state’s Energy Highway program, which involves the evaluation of dozens of power and transmission projects that would help with the state’s future power needs. The authority will be taking comment on these proposals until July 31.

CVE is an affiliate of Advanced Power AG (AP), an energy development company that has developed more than 9,400 MW of power generation projects in the U.S. and worldwide. AP is joined by GE Energy and Marubeni Corp. in the development of the project. Utilizing GE’s 7FA.05 generation technology, the CVE Project will meet the load growth of a rebounding economy, offset the retirement of aging generation due to new environmental rules, and address the gap created if the Indian Point nuclear facility were to be retired, said the project proposal.

The CVE Project will be located on an abandoned industrial site adjacent to high-voltage power lines and an interstate gas pipeline. The project is located in southeastern New York (in the New York ISO Zone G), south of the Leeds-Pleasant Valley transmission corridor, an area that has been determined by the NYISO to have significant electric transmission constraints, the proposal noted. “Due to its favorable location on the grid, and as one of the most efficient, reliable and least emitting energy producers, CVE will be dispatched ahead of higher emitting generators, causing those units to operate less frequently, thereby yielding net air quality benefits and production cost savings across New York State,” it added.

Project development and construction will require an estimated investment of about $1bn. There will also be up to 750 construction jobs. Overall economic benefits to Dutchess County alone are estimated at $224m during construction and $22m annually during operation.

“Obtaining a long-term Power Purchase Agreement (PPA), or equivalent contractual off-take agreement, from an ‘investment-grade’ counterparty will be an essential element for the CVE Project to be financed and constructed,” the proposal added. “A PPA will ensure a stable cash flow to the project, which will reduce risk and provide the most attractive economic benefits. CVE believes that the State of New York can facilitate such an agreement, and in turn accomplish the goals of the Energy Highway Initiative, through the creation of a state-sponsored Request for Proposals (RFP).”

AP has entered into a Joint Development Agreement with a subsidiary of General Electric (NYSE: GE) for the development of the CVE Project. GE will supply its latest 7FA.05 gas turbine technology, highly efficient steam turbines, and generators, with the steam turbines and generators expected to be made in Schenectady, N.Y. GE will have a continuing service agreement with CVE after the facility is built, providing maintenance services for the equipment. Marubeni owns a minority interest in the CVE Project. Marubeni, with offices in New York, N.Y., has a similar strong power generation background, with ownership in more than 29,000 MW of power generation facilities.

The project developers expect to begin construction in 2013 and the project is anticipated to be operational in 2016.

The project will be comprised of three combined-cycle units, each consisting of a combustion turbine generator, a heat recovery steam generator with supplemental duct firing, and a steam turbine generator. Water use will be minimized by the use of air cooled condensers. Process water supply will be provided from new, on-site, deep bedrock wells. After discussion with local environmental groups regarding water consumption, the CVE team has incorporated a Zero Liquid Discharge system, which will recycle and re-use water, reducing the need for process water and ensuring that no process wastewater will be discharged. The project will be equipped with dry low-NOx burners and selective catalytic reduction technology to control emissions of NOx, and an oxidation catalyst to control emissions of carbon monoxide and volatile organic compounds.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.