CHARLESTON — Giving credit to the tax incentives of the new Cut Inflation Act, Competitive Power Ventures on Friday announced plans to build the state’s first multi-billion-dollar natural gas power plant using capture technology. carbon.
State economic development officials and representatives from Maryland-based Competitive Power Ventures made the announcement Friday afternoon at the Charleston Marriott Hotel.
“It’s an exciting day and another exciting day in West Virginia,” said U.S. Sen. Joe Manchin, DW.Va., before introducing CPV CEO Gary Lambert. “We had a lot of exciting days and it just keeps getting better.”
CPV plans to build an 1,800 megawatt combined cycle natural gas power plant in West Virginia that will use carbon capture and sequestration technology to control greenhouse gas emissions. The project is expected to be completed within the next 10 years. CPV’s total investment is expected to exceed $3 billion.
“I have to say the reception in the state so far has been amazing,” Lambert said. “It will take us several years, and we have a lot of studies to do and a lot of work to do. We’re going to design this project to fit well into the community, work with the workforce during the development process…and we’re going to work very closely with the agencies and all the reps here to make this project a reality.
A specific location for the project will be announced at a later date, though sources believe the company is considering Doddridge County, already a major hub for the state’s natural gas industry with plenty of access infrastructure. and pipeline already in place. Lambert neither confirmed nor denied whether Doddridge County would be the final destination, saying the company was considering other locations and still preparing for the permitting process.
The natural gas plant proposed by CPV is their most ambitious project to date. The company has nine projects, including wind and solar projects and six natural gas power plant projects.
Lambert said the power project and carbon capture and sequestration project could create 150 full-time jobs combined and up to 1,000 construction jobs. CPV’s largest natural gas plant project in Grundy County, Illinois is expected to create 300 full-time jobs and will represent a $1.3 billion investment in this community when operational in 2023. When complete, the plant will be a wholesale power supplier to the PJM Interconnection market serving multiple East Coast states.
Officials said the project was made possible by updates to 45Q tax credits for carbon capture and sequestration projects through the $737 billion Cut Inflation Act negotiated by Manchin and signed into law by President Joe Biden last month.
“What we did was we made sure that we were going to be able to produce fossil energy, using all the fossil resources that we have in the United States of America,” Manchin said, “more cleaner than anywhere else in the world, but being able to do it and produce it and making sure we’re energy independent.
“At the same time, we are taking the same path with our renewables, being able to invest in renewables and the guarantee of an investment over 10 years with investment tax credits and production tax credits, which that we have never done for a substantial period of time”. period of time,” he continued.
Changes to the 45Q tax credit include the dollar amount per ton for storage in saline geological formations, use by industrial and energy projects. The credit is valid for 12 years after the end of the project and its online publication. Any project that begins construction by 2033 would be eligible for tax credits.
The Reducing Inflation Act also allows eligible businesses to receive the tax credit as a fully refundable direct payment and this option is only valid for five years after the project goes live for businesses to profit. To benefit from the credit, companies must capture at least 75% of their greenhouse gas emissions.
“It makes the difference; it makes a project like this work,” Manchin said. “That’s the point.”
Company officials also thanked the Legislative Assembly for passing legislation this year establishing carbon capture and sequestration standards. House Bill 4491 created a carbon dioxide sequestration pilot program and set permitting requirements for future projects.
“Bill 4491 here in the state helps pave the way for underground carbon storage,” Lambert said. “We need certainty there and we’re looking to attract investors into that side of the business. They want to know that if they put it underground, the state will support them in the long run. This bill does exactly that.
The CPV project is the second project announced this week that will use clean energy and benefit from the IRA. Two companies belonging to Berkshire Hathaway buy the former Century Aluminum site in Ravenswood. BHE Renewables and Precision Castparts Corp. will build a modern titanium smelting facility powered by solar energy. Companies are calling it an industrial site powered by a renewable energy microgrid, the first of its kind, representing an investment of $500 million.
California-based Sparkz also announced earlier this month that it would build an electric battery plant in Taylor County near Bridgeport. The proposed manufacturing plant would employ 350 workers on the site of a former glass factory. The company first announced the factory project in March, which would build cobalt-free lithium-ion batteries. Sparkz patents come from Oak Ridge National Laboratory and Lawrence Berkeley National Laboratory.
“We are able…to generate electricity from West Virginia, and in the cleanest way possible, using the natural resources we have,” Manchin said. “It’s a tremendous opportunity.”