Full Title: Where’s the Beef? Enchant's San Juan Generating Station CCS Retrofit Remains Behind Schedule, Financially Unviable
Author(s): David Schlissel
Publisher(s): Institute for Energy Economics and Financial Analysis (IEEFA)
Publication Date: May 25, 2021
Full Text: Download Resource
Description (excerpt):
Over the last two years, it has become clear that the project by Enchant Energy and the City of Farmington (Enchant) to extend the life of the San Juan Generating Station is in serious trouble. Limited progress has been made. But the project is already significantly behind schedule in securing the full $1.5 billion financing for the project, construction has not started, and project permitting is going to take far longer than Enchant either realizes or is willing to acknowledge.
Enchant has admitted that the project is six to 10 months behind schedule due to plant outages that prevented testing needed to develop the design for the carbon capture retrofit and a delay in obtaining funding. However, Enchant is now acknowledging that construction is unlikely to start before mid-2022, or a year and a half later than its initial projection. Also, after initially claiming the retrofitted plant would be capturing carbon dioxide at the end of 2023, Enchant now admits that only half of the carbon capture island is likely to be in service at the end of 2024, and the entire project won’t be complete until mid-2025.1 Even the project’s important Front End Engineering Design (FEED) study is behind schedule due to inadequate funding. Further delays can certainly be expected as the project continues.