MCV looking to add new 640-MW combined-cycle gas unit

It looks like one of the larger natural gas-fueled power plants in the Midwest could be getting even bigger if it receives needed permits from the state of Michigan.

Owners of the Midland Cogeneration Venture Limited Partnership (MCV) have applied to the Michigan Department of Environmental Quality (MDEQ) for an air permit to install a new nominal 640-MW combined-cycle natural gas unit at the Midland site, which already includes 1,630 MW of generating capacity.

Midland Cogen’s parent company, MCV Holding Co. LLC, said in a July 11 news release that it hopes to start construction at the end of this year and begin commercial operation in 2015. The news release did not report the expected cost of the new combined-cycle unit.

As many as 500 construction jobs could be created during peak construction of this project and 20 permanent jobs could be added once the plant goes into commercial operation.

With CMS (NYSE: CMS) subsidiary Consumers Energy and other power generators announcing the closure or mothballing of coal-fired power plants in the Midwest, as well as the permanent cancellation last year of the proposed 750-MW Mid-Michigan coal plant slated for Midland, MCV President and CEO Roger Kelley called the project important to the region’s future.

“This project helps to assure the reliability and availability of power to meet existing and future demand for energy by our existing customers, which include Dow Chemical, and help Michigan continue on its path of recovery from the recession,” he said.

The MCV power station is one of the largest gas-fired cogeneration plants in the United States. The facility is currently capable of producing about 1,630 MW of electricity and up to 1.5 million pounds per hour of process steam for industry use. The natural gas facility is located at the site of a never-completed nuclear power plant.

MCV has been in commercial operation since 1990 and it serves Dow Chemical and Consumers Energy with steam or electricity. It has met its energy commitments to Dow virtually 100% of the time and over 99% of the time to Consumers Energy, Kelley said.

MCV Holding is owned by subsidiaries of EQT Infrastructure Limited (70%) and Fortistar LLC (30%).

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.