AES pursues air permitting for Deepwater power project in Texas

A unit of AES Corp. (NYSE: AES) is pursuing air permitting to “authorize construction” of a power plant in Harris County, said a Jan. 20 notice posted Jan. 21 to the website of the Texas Commission on Environmental Quality.

Said the brief notice: “AES Generation Development, LLC, has applied to the Texas Commission on Environmental Quality (TCEQ) for issuance of State Air Quality Permit Number 138152, issuance of Prevention of Significant Deterioration (PSD) Air Quality Permit Number PSDTX1492, issuance of Nonattainment Air Quality Permit Number N246, and issuance of Greenhouse Gas (GHG) Prevention of Significant Deterioration (PSD) Air Quality Permit Number GHGPSDTX153, which would authorize construction of the AES Deepwater Power Plant located at 701 Light Company Road, Pasadena, Harris County, Texas 77506.”

The notice provides no further details on this project. The permit application, which is not available on the commission’s website, was submitted to the TCEQ on Dec. 16, 2015. The TCEQ executive director has determined the application is administratively complete and will conduct a technical review of the application.

A project contact listed in the notice is: AES Generation Development LLC, 5417 Levering Mill Road, Apex, North Carolina 27539-3670, Sid Rajmohan, Environmental Resources Management, (832) 730-1056.

AES Corp. noted in a February 2013 annual Form 10-K report filed with the SEC: “In 2010, Deepwater, our 160 MW petcoke-fired merchant power plant located in Texas, experienced deteriorating market conditions due to increasing petcoke prices and diminishing power prices. As a result, Deepwater incurred operating losses and was shut down from time to time to avoid negative operating margin. In the fourth quarter of 2010, management concluded that, on an undiscounted cash flow basis, the carrying amount of the asset group was no longer recoverable. The fair value of Deepwater was determined using a discounted cash flow analysis and $79 million of impairment expense was recognized.”

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.