Talen Energy Corporation Tuesday announced it has completed a feasibility assessment related to bringing natural gas to the Montour plant in Montour County and installing boiler modifications to enable a dual-fuel, also known as co-firing, capability to operate on coal, natural gas or in combination.
Engineering and design work is already in progress and, based on obtaining all necessary permitting and regulatory approval, the anticipated completion date is the second quarter of 2018.
Based on the results of a competitive RFP process, the company is currently in the process of selecting a qualified third party to construct, own and operate a 15 mile lateral pipeline to bring natural gas to the 1,500 megawatt Montour plant.
The estimated capital expenditure for plant modifications is approximately $70 million with additional pipeline expenses and payments to be made to the third party constructing the pipeline and regulating and metering station.
"Montour is a significant asset in the Talen Energy fleet and we are making the necessary investments to improve its competitive position in the market," said Paul Farr, Talen Energy President and Chief Executive Officer. "The Montour plant is located in close proximity to one of the largest natural gas formations in the world, the Marcellus Shale. Co-firing the plant to burn natural gas, produced in Pennsylvania, enables Talen Energy to leverage the strategic location of the plant."
The pipeline company selected by Talen Energy will be responsible for obtaining all necessary environmental and construction permitting from the appropriate federal, state and local agencies.Talen Energy expects to announce additional details related to the pipeline, contractor and next steps as part of its typical quarterly reporting as those details become available.