August 15, 2019 — Sargent & Lundy released a pre-feasibility study commissioned by Enchant Energy to evaluate the technical feasibility and high-level cost of installing amine-based CO2 capture technology at the San Juan Generating Station (SJGS) for use in enhanced oil recovery (EOR).
The SJGS facility is a nominal 847‑MW-net coal-fired power plant located in northwest New Mexico. The power plant has been identified as a candidate for retrofitting CCUS technology. SJGS currently has two operating coal-fired utility boilers, Unit 1 and Unit 4, with Units 2 and 3 recently retired. The retired units have been left in place with much of the auxiliary equipment mothballed.
The study considers current federal and state regulatory requirements as well as the cost savings associated with using existing infrastructure from the retired units at SJGS to supply the CO2 capture utility requirements.
Key findings from the pre-feasibility study include:
- Use of the existing auxiliary systems lowers both project capital costs and the overall cost of capture.
- The total project cost is estimated to be $1.295 billion, which considers the current level of technology advancements and cost savings for application at SJGS.
- SJGS is in relative proximity to a CO2. This offers a market opportunity from the sale of the produced compressed CO2.
- The cost to implement CO2 capture at SJGS is estimated to be between $39 and $43 per metric ton.
- A more in-depth front-end engineering and design (FEED) study should be conducted to advance the project definition, engage the technology providers to provide site-specific performance data, and develop a detailed cost estimate.
- If the FEED study demonstrates the viability of the project, it could become the first large-scale CCUS retrofit of a coal-fired power plant that has the potential to reduce 6 million metric tons of CO2 per year. This would decrease its emission intensity from 2,201 pounds per megawatt-hour to 249 pounds per megawatt-hour – a decrease of approximately 90%.
The pre-feasibility study garnered interest from the U.S. Energy Association (USEA). Enchant Energy’s CEO Jason Selch and Sargent & Lundy Senior Vice President Sean McHone were invited to present initial findings at a USEA briefing held in Washington D.C.
Sargent & Lundy has extensive experience conducting technical evaluations for CO2 capture projects and performing FEED studies for clients, including preliminary engineering, project layouts, conceptual designs, and cost estimates. The firm has conducted studies and performed detailed balance-of-plant (BOP) engineering and technical evaluations for carbon capture projects since 2007.
* Note: The Institute for Energy Economics and Financial Analysis (IEEFA) published a report which questioned the viability of plans for SJGS and contained numerous inaccuracies and misleading statements. Read Enchant Energy’s response to the IEEFA report.