Skanska signs $56m deal for coal waste disposal at Kentucky Utilities

Skanska (STO: SKAB) said Jan. 9 that it has signed a contract to perform engineering, procurement and construction services for a Coal Combustion Residual (CCR) Treatment System at Kentucky Utilities’ E.W. Brown plant in Harrodsburg, Ky.

The company said in its brief statement that the contract value is $56m, which will be included in the order bookings for Skanska USA Civil for the fourth quarter of 2013. Work will commence in February 2014 with anticipated completion in January 2016.

Brown, located hear Harrodsburg, Ky., has three coal generators that can produce a total of about 759 MW (net), more than one-fifth of KU’s total capacity. An average of 1.5 million tons of coal are burned annually at Brown. The site also has hydro and combustion turbine facilities.

Said the KU website about the plant: “As a result of the new stricter Environmental Protection Agency’s regulations, improvements will be made on Brown Unit 3 and the Brown ash pond will be converted to a dry storage landfill. Brown units 1 and 2 will continue to operate as always and the installation of additional emission controls will be deferred to get a clearer picture of pending federal environmental regulations.”

KU spokesperson Chris Whelan said Jan. 9 that the Skanska work is part of that dry landfill conversion project and that there are no plans at this time to retire Brown Units 1 and 2. She said that various air emissions technologies, including dry sorbent injection, are being looked at for installation on those two units.

Skanska USA is one of the leading development and construction companies in the country, consisting of four business units: Skanska USA Building, which specializes in building construction; Skanska USA Civil, specialized in civil infrastructure; Skanska Infrastructure Development, which develops public-private partnerships; and Skanska USA Commercial Development, which develops commercial projects in selected U.S. markets.

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.