Virginia’s largest utility company has received approval from state regulators to build a liquefied natural gas (LNG) storage facility for two of its gas-fired power stations in the state’s Southside region. This decision, despite opposition from environmental groups promoting renewable energy, marks a significant development.
Dominion Energy gained approval from the State Corporation Commission on Monday to construct the 25-million-gallon LNG storage facility, with a capacity to store up to 2 billion cubic feet. This facility will supply the utility’s 1,358-megawatt Brunswick and 1,588-megawatt Greensville power stations, utilizing combined cycle turbines.
Jeffrey G. Miscikowski, Dominion Energy’s vice president of project construction, stated the project is essential to maintain a safe and reliable fuel source during natural disasters and supply disruptions, as noted in his testimony.
Concerns were raised by environmental groups about the cost implications for consumers. Grayson Holmes, a senior attorney with the Southern Environmental Law Center, criticized the additional fuel costs for facilities that are less than a decade old, with each having a construction cost exceeding a billion dollars.
The State Corporation Commission approved the project based on Dominion’s argument that it is necessary due to past cold-weather events, like Winter Storm Elliot in 2022, which disrupted gas supply.
The commission acknowledged increased severe weather frequency due to climate change, emphasizing the importance of the LNG facility for grid reliability during such events.
The Virginia Office of the Attorney General noted that the facility’s benefits depend on abnormal events. Carew S. Bartley, assistant attorney general, pointed out that in two decades, Dominion has not experienced customer outages due to fuel supply issues.
Reports from PJM Interconnection and other regulatory bodies after Winter Storm Elliot highlighted the need for preparation for extreme weather events, becoming more severe due to climate change.
The two plants provide power for approximately 700,000 homes, or a quarter of Dominion’s total generation fleet over five years. The LNG storage can support operations for several days during disruptions.
The facility is expected to increase the effective load carrying capacity (ELCC) of the power stations, potentially generating an additional $52 million in revenue by 2028.
Operation of the LNG facility is projected to emit approximately 68,919 tons of carbon dioxide-equivalent emissions, contributing to a slight increase from the plants’ total emissions in 2023.
Construction is set to begin this year, with completion expected by 2027. The facility will be built adjacent to the Greensville Power Station, utilizing existing infrastructure.
The project’s capital cost is estimated at $547 million, with a recovery range of $1.07 billion to $1.45 billion over its lifespan. This equates to an annual increase of $5 to $12.50 for average residential customers.
Dominion’s environmental justice analysis noted that four nearby census block groups are communities of color, with two classified as low-income. However, the project was deemed non-disproportionate in its impact.
Approval of this project coincides with Dominion’s pursuit of a natural gas plant in Chesterfield County to meet increasing grid demand. Dominion is incorporating about 20% of its energy mix from carbon-emitting sources, as mentioned in its latest Integrated Resource Plan.
Environmentalists argue against new fossil fuel projects, citing the Virginia Clean Economy Act’s goal to decarbonize the grid by mid-century. The LNG facility’s lifespan may be shortened without a reliability waiver.
Peter Anderson, director of state energy policy at Appalachian Voices, criticized the project, advocating for clean technologies like large-scale batteries for reliability benefits and compliance with climate goals.
Original Story at insideclimatenews.org