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Adios coal

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  • Member since
    March 2003
  • From: Central Iowa
  • 6,901 posts
Posted by jeffhergert on Thursday, July 5, 2018 6:24 PM

PJS1

 

 
charlie hebdo

The market-driven switch to cheaper natural gas is the biggest factor. Combine that with conservation (more efficient usage, as Balt suggests) and the older, less-profitable coal fired plants are rapidly being retired or converted.

 

Spot on!  The price of natural gas has fallen from nearly $14 an MCF ten years ago to $2.97 an MCF at the Henry Hub last week.  December 2018 futures for delivery at the Henry Hub were $3.01 an MCF last week.  All the indicators suggest that the price of natural gas will remain low far into the future.

None of the coal fired electric generating plans in Texas, as far as I know, that have been or are on the list to be mothballed have been converted to natural gas.  It is generally more cost effective to build a new gas fired plant, especially when the operating expenses are factored into the equations.   Many of the newer gas plants can be run with 1/4 of the employees needed for a coal fired or older gas fired plant. 

 

Alliant Energy's coal plant near Marshalltown, IA was converted to natural gas.  It became more expensive to operate with gas, so much that for a while there were rumors that they were going to convert one of the units back to coal.  It never happened.  They wanted to build a new coal plant, but of course ran into opposition.  They revised the plan to build a gas fired plant instead.  There was still opposition, but not as much.  Today there is a new gas fired plant in operation there.

My first job on the railroad was off the conductor's extra board to spot a coal train at the coal plant.  The last I knew, a couple of years ago, the tracks were being used to store Alliant family leased coal hoppers.

Jeff 

  • Member since
    June 2009
  • From: Dallas, TX
  • 6,952 posts
Posted by CMStPnP on Saturday, July 7, 2018 12:13 AM

jeffhergert
My first job on the railroad was off the conductor's extra board to spot a coal train at the coal plant.  The last I knew, a couple of years ago, the tracks were being used to store Alliant family leased coal hoppers.

While waiting at Milwaukee Mitchell Field Airport on Friday this week, watched a long UP Frac Sand train head South to Chicago on the ex-C&NW  Milwaukee to Chicago line that parallels the airport.     That sucker had to be two miles long had three large GE's (two were cab less) as DPU's in the center.     The frac sand cars were grey gloss painted 2 bay covered hoppers and all looked fairly new from the glossy sheen on the paint.

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