Trailblazer will rank among the world’s cleanest fossil-fuel-based power plants and act as a strategic source of carbon dioxide (CO2) for enhanced oil recovery (EOR) applications in West Texas. Moreover, it will supply Texas with an additional 600 megawatts of electric generating capacity.
“Trailblazer will harness the most advanced coal-based technologies to supply secure, low-carbon production of electricity,” said David B. Peugh, Arch’s vice president of business development. “Furthermore, Trailblazer’s success could set the stage for a new generation of power plants fueled with America’s most abundant, reliable and cost-competitive fuel.”
Tenaska Business Development President David Fiorelli said the partnership with Arch will bring a number of strategic benefits to the Trailblazer project. “As one of the largest suppliers of low-sulfur Powder River Basin coal, Arch brings its 40 years of experience in the energy and coal industries,” said Fiorelli. “By working together, we will help lead the way to using our nation’s most abundant energy resource in an environmentally responsible manner.”
In capturing 85% to 90% of the CO2 emissions from the plant, Trailblazer will emit 70% less carbon CO2 than the cleanest natural gas-based power plants. Moreover, Trailblazer will ship the captured CO2 to the nearby Permian Basin, where it will be used to boost oil production and extend the life of that critically important domestic energy resource.
As part of the agreement, Arch will supply the plant’s fuel needs for the first 20 years of operation from its Powder River Basin operations in Wyoming. A recent Electric Reliability Council of Texas (ERCOT) report projects that Texas will need to add more than 55 gigawatts of new and replacement power-generating capacity over the next two decades to meet projected demand growth.
The Tenaska deal dovetails with Arch’s ongoing strategy of making small but strategic investments in technology companies focused on making coal use cleaner. Arch’s technology portfolio also includes an equity interest in DKRW Advanced Fuels, which is planning to convert coal into clean-burning transportation fuel on Arch reserves in southern Wyoming, and ADA-ES, a leading-edge emissions control company.