This story was originally published by Canary Media.
The Trump administration announced plans for a major natural gas-fired power plant in Ohio. However, financial risks and permitting challenges have led to skepticism about the project’s viability.
The U.S. Department of Commerce revealed the plan in a press release, highlighting projects from a trade deal with Japan, which includes a $550 billion investment in the U.S. A fact sheet outlines the $33 billion, 9.2-gigawatt plant to be constructed near Portsmouth, Ohio, by SB Energy, a SoftBank subsidiary.
Several details remain unclear, such as the exact location of the plant. Energy Secretary Chris Wright and other officials will visit Piketon, Ohio, possibly revealing more information.
Questions linger over equipment availability amid a supply chain backlog and how quickly the plant can connect to the grid, where approvals typically take years.
Critics question the project’s feasibility, with state and local officials unaware of the announcement. Energy analyst Dennis Wamsted doubts the plant will materialize at its proposed size.
Turbines are sold out in the U.S. through 2029, indicating potential delays. SB Energy might bypass this hurdle by negotiating with other companies. Skilled labor shortages pose additional challenges.
Approval from grid operator PJM Interconnection is necessary, but the project is not yet in their queue. The plant also requires site and construction permits from Ohio authorities, with no applications filed yet.
Pipelines and infrastructure for natural gas transport will need state and possibly federal approvals. The U.S. Supreme Court recently ruled against a tariff program, affecting trade policy and potentially altering SoftBank’s involvement due to financial risks.
Despite these obstacles, natural gas supply for the plant is not a concern. Ohio’s gas production can meet the plant’s needs, but increased demand could raise prices regionally.
Risky Business
If operational, the plant would produce significant greenhouse gases. Estimates suggest emissions equivalent to 4 million cars, based on federal data. Fugitive methane and nitrogen oxide emissions present additional environmental and health concerns.
Renewables offer a zero-emission alternative and faster grid integration. The financial risk of the gas plant could lead to higher electricity bills for Ohioans.
“If demand doesn’t materialize, you will be left with stranded assets intended to use expensive fuel.”
— Eric Gimon, Energy Innovation
Future changes in regulations could limit the plant’s operations. If electricity demand forecasts are overstated, the plant risks becoming a stranded asset.
Natural gas price volatility adds to the uncertainty. With a $33 billion investment, doubts remain about the plant’s cost-competitiveness compared to renewables.
Original Story at insideclimatenews.org