Monday, April 4, 2011

MACT Rule May Close Coal-Fired Generating Units

Greenhouse gas restrictions have long been seen as the major enemy of coal-fired electric generating units (EGUs), but it may be that there are other forces at work.  One is the lower price of natural gas, arising from the abundant supplies  found in shale formations nationwide.  The other is the Boiler MACT rule (Maximum Achievable Control Technology), which will impose new limits on certain hazardous air pollutants that are emitted by large boilers that burn coal.  The upgrades that will be required to enable some EGUs to meet the Boiler MACT limits will make it more cost-effective to shutter plants  rather than retrofit them with controls.

That's what is happening in North Carolina, where a coal fired EGU will be shut down 6 years ahead of schedule because a gas-fired turbine is coming on line, and the Boiler MACT makes continuing operation of the coal-fired unit infeasible.  The full story is here.  

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