$615 Million facility will use local natural gas to produce electricity
Moundsville, WV /PRNewswire/ - A natural gas combined-cycle power plant with a nameplate capacity of 549 megawatts will be built on a 37-acre site in Marshall County approximately four miles south of Moundsville, with construction planned to begin in mid 2015, officials at Moundsville Power LLC announced today. Moundsville Power LLC is a Buffalo, New York-based independent power plant developer.
Moundsville spokesman, Andrew W. Dorn Jr., said Moundsville Power LLC is developing the project, which will cost approximately $615 million. He said, "The project will have a very significant positive financial impact on Moundsville, Marshall County and the State of West Virginia." Dorn stated that union craft labor will build the plant and will be managed under a National Maintenance Agreement.
According to an economic impact study performed by Tom S. Witt, PhD of Witt Economics LLC in Morgantown, the project will average more than 400 construction jobs during the estimated 30-month construction period.
"This is an exciting project with the potential to have a great positive impact on our region," explained Don Rigby, Executive Director of the Regional Economic Development Partnership. "We have been working the Moundsville Power development team for over a year now and will continue to provide assistance to help them as they work through the project's development."
The plant will utilize $105 million of natural gas annually sourced from West Virginia producers and processors. Witt projected the annual economic impact during construction would be in excess of $815 million and the plant will have an annual operating impact of over $283 million. Once operational, the plant will employ 30 skilled workers.
"As a County Commission we are pleased that this project is planning to use locally produced gas to create jobs and investment in Marshall County," stated Marshall County Commissioner Don Mason. "We will continue to look for ways to support the development team as they seek the approvals and financing needed over the next year to start building this plant."
Moundsville Power LLC is contracting with a consortium consisting of CH2M Hill and General Electric (GE). The CH2M Hill-led consortium will build the plant and provide construction and operating guarantees. CH2M Hill, a global leader in consulting, design, design-build, construction, operations, and program management with 26,000 employees, will design, engineer and construct the facility. CH2M Hill has successfully built over 19,000 megawatts of power plant production.
GE, the world's largest manufacturer of power plant turbines and generators, will provide the natural gas turbines and power island equipment. GE will also provide a long-term contractual services agreement to ensure the efficient operation of the power project.
The plant will use GE 7.04 gas turbines in a two-by one-configuration. The plant will be fuel-efficient and have a small environmental footprint. As a combined-cycle facility, the heat and rotational energy produced by the combustion of natural gas in a gas turbine produces electricity. The exhaust heat from that process is then used to produce steam, which drives a steam turbine to produce additional electricity without the use of additional natural gas.
"Our natural gas producers are supplying energy for America, said Corky DeMarco, Executive Director of the West Virginia Oil and Natural Gas Association. "This merchant power plant is manufacturing a product that uses Marcellus Shale to create jobs in the Mountain State."
West Virginia Senate President followed by saying, "West Virginia has worked hard to bring new projects like Moundsville Power to our state that utilize abundant shale gas. This is one more project that shows that our state is open to new business opportunities."
The project is being built on a 37-acre portion of the former Allied Chemical Plant site that is now owned by Honeywell who has been remediating the site.
"This project would not be possible without the vision, leadership and desire of Honeywell to return as much of this site as possible to a viable economic use," said Dorn. "Honeywell has been an indispensable partner in the development of the site providing significant financial and engineering support to move the project forward. Without Honeywell's support and participation this project would not be possible."
KeyBanc Capital Markets Inc., based in Cleveland, has been engaged to act as the exclusive project finance advisor.
"The required regulatory approvals are well underway and we want to thank the Regional Economic Development Partnership, the Marshall County Commissioners and the Marshall County Board of Education for their consideration," explained Dorn.
"I also want to thank a number of West Virginia-based professional advisors who have provided tremendous assistance to us, including the Charleston-based law firm of Spilman, Thomas and Battle, PLLC, who has provided legal and environmental assistance, as well as Potesta & Associates, Inc., who has worked on numerous required environmental and siting studies and permit applications required for regulatory approvals, and McKinley and Associates, who has served as an engineering and architectural consultant."
Moundsville Power LLC believes that the plant will be a catalyst for continued economic growth and will help to maintain the reliability throughout the PJM grid.
"What we are building is a facility that will bring living-wage jobs and long-term investment to Marshall County and the surrounding region," Dorn said. "We are also creating an operation that demonstrates responsible use of West Virginia'snatural resources and produces electricity in an extremely clean manner."
Learn more at: http://www.moundsville-power.com/
SOURCE: Moundsville Power LLCCopyright 2014 PR Newswire. All Rights Reserved