The city of Logansport, Ind., through its Utility Service Board, is seeking proposals from qualified providers interested in entering into a public-private agreement to repower the coal-fired units operated by the Logansport Municipal Utility (LMU) to refuse derived fuel (RDF) as the primary fuel source with natural gas backup.
A request for proposals sent out by the city establishes a Jan. 11, 2013, deadline for responses to be filed. In addition to the coal-to-RDF conversion at the existing units, the proposal should provide a plan for the future expansion of generating capacity under the control of the LMU to a total capacity of 300 MW also utilizing RDF with natural gas backup.
The target generating cost for the project is $0.045 to $0.055 per kWh and will be a key determining factor for the project. The selected provider would be responsible for the costs of obtaining all approvals required from state and local regulatory entities including the Indiana Department of Environmental Management and the Indiana Utility Regulatory Commission (if required). The successful vendor must also provide for the “retasking” of the current coal supply contract entered into by LMU.
Proposals should provide for the design, construction, management, maintenance and financing of the project and the transfer of ownership of the proposed facilities and improvements to the city over a period not to exceed 25 years, the RFP said. The project would be under the operational control of LMU throughout the term of the agreement.
The existing coal units are:
- Boiler #5/Steam Turbine Generator (STG)-4, 16.5 MW capacity – This unit includes a 145,000 pounds per hour (pph) nonreheat stoker coal fired boiler and a 16.5-MW preferred standard steam turbine generator. It has been operating for 58 years exclusively firing coal. An electrostatic precipitator has been retrofitted to reduce particulate matter (PM) emissions. The LMU has also retrofitted a magnesium hydroxide injection system for control of SO3 emissions and blue collared plume as well as to reduce slag formation in the boiler and to improve fuel firing flexibility.
- Boiler #6/STG-5, 22 MW capacity – This unit includes a 225,000 pph non-reheat stoker coal fired boiler and a 22-MW preferred standard steam turbine generator. It has been operating for 50 years exclusively firing coal. As with Boiler #5, particulate emissions have been reduced with the retrofit of an electrostatic precipitator. Also, Boiler #6 was retrofitted with a magnesium hydroxide injection system.
Phase II of the project includes a proposal to design, construct, maintain, finance and transfer to the LMU sufficient additional RDF-fueled capacity (with natural gas backup) to bring the total rated capacity available to the LMU to 300 MW, a sharp step up from the current capacity. Phase II also includes a plan to transfer ownership of the constructed units to the LMU over a period not to exceed 25 years pursuant to the terms of the agreement. Again, this generating facility would be operated by LMU. The construction of this additional generating capacity would occur at a site located within the service area of the LMU, which would be acquired by the offeror and transferred to the LMU under the terms of the agreement.
The RFP noted that LMU entered into an agreement for firm energy and capacity with Duke Energy Indiana in June 2009. The initial term of the capacity agreement is through Dec. 31, 2018. The capacity agreement may impact the implementation of each phase of the project. “The selected respondent should be responsible for any potential issues raised by the Capacity Agreement in conjunction with the LMU and proposals should include a description of the respondent’s plan for addressing identified issues,” said the Logansport RFP. “A copy of the Capacity Agreement is available from the Utilities Superintendent.”