Plans for coal-fired power plant in Texas canceled

Plans for a 1,320 MW coal-fired power plant in Texas have been canceled, according to a statement released Feb. 14 by the White Stallion Energy Center LLC.

“Proposed rules issued by the U.S. Environmental Protection Agency effectively prohibit solid-fueled power generation, and pronouncements by the administration – most recently in the president’s State of the Union message – continue to indicate that additional regulatory barriers to such projects will be erected,” White Stallion Energy Center Chief Operating Officer Randy Bird said.

The $2.5 billion White Stallion Energy Center would have been located near the Port of Bay City in Matagorda County, Texas, about 90 miles southwest of Houston.

The announcement marks the second time a project to build a coal-fired power plant in Texas has been canceled in the past 30 days. The Las Brisas Energy Center, which would have been located on the north side of the Port of Corpus Christi’s inner harbor, was canceled in late January when the company funding the project announced it was dissolving.

Although Bird also said the current low prices of natural gas have made “the price of electricity from a new coal-fired generator uncompetitive at this time,” the U.S. Energy Information Administration recently predicted an increase in the amount of power created from coal-fired generation over the next two years in its Short Term Energy Outlook. The administration based its prediction on the rising price of natural gas, although the report did state there is a shift toward using gas-fired power generation in the U.S.

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