TONAWANDA, N.Y., Dec. 20 (UPI) -- NRG Energy Inc. and New York regulators have inked a tentative deal on a new coal plant that would greatly reduce pollution compared to other coal plants.
NRG announced Tuesday it signed a "conditional" contract with the New York Power Authority to build a 680 megawatt Integrated Gasification Combined Cycle plant in Tonawanda, N.Y.
According to an NRG release it will cost $1.5 billion to build and will come online in 2013.
"New York should be commended for exercising great courage and leadership in tackling head on the country's single biggest issue, global warming, while embracing coal -- our most affordable, abundant domestic fuel source," NRG President and Chief Executive Officer David Crane said. "While we realize this is only the beginning of a long road to implementation, we are gratified to be part of such an important milestone and we look forward to working with New York to begin construction of this important technology by 2008."
Coal plants have come under increased fire recently as a source of toxic pollutants, spurring the industry to invest in technologies to limit such emissions such as mercury, carbon dioxide and nitrogen oxide.
IGCC technology converts the coal to a gas, allowing much of the pollutants to be taken out and then used to generate power along with the coal.
This technology is much more expensive than traditional and more polluting coal plants. The NRG contract is contingent on finding state, federal or other funding to cover the costs.
