Power producer FirstEnergy has canceled its plans to convert a power plant in Shadyside, Ohio, to use biomass fuel in two of its boilers.
It said the price of electricity had fallen “significantly” since it decided on the move to renewable feedstocks, and no longer supports the repowering of the RE Burger Plant.
The company said last week that instead, it will permanently shut down units four and five at the plant by the end of this year.
The $200m project had already secured permits from the US Environmental Protection Agency and state regulators, and would have provided 75 megawatts of biomass power generating capacity.
Gary R. Leidich, executive vice president and president of FirstEnergy Generation, said: “Despite our best efforts, we were unable to overcome the challenges of the difficult economy to cost-effectively repower the Burger Plant to burn biomass.
“We are disappointed that this groundbreaking project will not be realized, particularly because plant employees worked with such spirit and determination to find a way to keep the units operating,” added Mr Leidich.
FirstEnergy, which has its headquarters in Akron, Ohio, said 79 employees at the plant will either continue working through the shut-down process or be temporarily reassigned to other company facilities such as the WH Sammis power plant in Stratton, Ohio.
The repowering of the RE Burger Plant units four and five had been part of a 2005 legal settlement with the US EPA to cut FirstEnergy’s sulfur dioxide emissions.
The company said it has notified the EPA of its decision to close the units.
FirstEnergy, which has a generating portfolio of 14,000MW, still plans to complete a $1.8 billion retrofit of the WH Sammis power plant by the end of the year, which will reduce the facility’s emissions by up to 95%.
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