The United States Energy Association heard a presentation about the San Juan Generating Station and carbon capture technology during a meeting in Washington D.C.
FARMINGTON — Retrofitting the San Juan Generating Station with carbon capture technology will likely cost about $1.23 billion, according to numbers Enchant Energy provided on June 27 in a presentation to the United States Energy Association in Washington, D.C.
After the retrofit is completed, Enchant Energy anticipates it will cost between $103 million and $120 million annually to operate and maintain the plant. It plans to acquire the power plant in 2022.
The numbers presented come from a scoping study that Enchant Energy contracted engineering firm Sargent & Lundy to complete. This study has not yet been publicly released, however Enchant Energy CEO Jason Selch anticipates it will be released online next week after the company launches its website.
Selch said he believes the $1.23 billion is a conservative number and the cost could be much lower, such as $800 million.
He explained that the scoping study looked only at one technology while the full feasibility study Sargent & Lundy is working on will evaluate the cost and effectiveness of multiple technologies.
Sean McHone, a senior vice president with Sargent & Lundy, also attended the presentation in Washington D.C. He described the scoping study — also called a pre-feasibility study — as a “smell test” to see if it is worth looking closer at the possibility of installing carbon capture.
Based on the scoping study, Enchant Energy plans to continue with a larger feasibility study.
While Enchant Energy believes it will pay $1.23 billion for the project, it anticipates more than $2.55 billion of tax credits through the new 45Q tax credit. The tax credit exists to provide incentives for investment into carbon capture technology.