Feb. 13, 2020
A company proposing to retrofit the San Juan coal plant with carbon capture is underestimating the project’s cost and overestimating its viability, according to a report released Wednesday.
Project investors are at risk for up to $450 million due to optimistic market assumptions by Enchant Energy, the company developing the project, according to analysis from the Institute for Energy Economics and Financial Analysis (IEEFA). The firm argues Enchant lowballed cost estimates, while overestimating the plant’s capacity factor, meaning the project won’t be as lucrative as the company says it will be, and could cost twice as much.
Enchant’s estimates are based on analysis from engineering firm Sargent and Lundy, and the company said it is confident in those results. “We have done our homework and we’ve had access to data that [IEEFA hasn’t] had,” Enchant Chief Operating Officer Peter Mandelstam told Utility Dive.