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They want more Fossil Fuels
They want more Fossil Fuels
The Hudson Valley deserves better
The Hudson Valley deserves better
Danskammer's Proposal
Danskammer's Proposal
Danskammer has put forward a plan to replace its 68-year-old, 511-megawatt natural gas plant along the Hudson River in the Town of Newburgh with a new, $500 million, 535-megawatt power plant that has the ability to provide additional peaking output to as much as 600 net MW to meet market demands, or support variations in generation from renewable resources. The project would be located entirely on lands owned by Danskammer in the Town of Newburgh in Orange County, New York while the old plant would be preserved and used to store batteries to hold electricity for the region's grid. Fewer employees would be required to operate the new facility compared to the 45-50 full-time workers who are there now.
The new power plant would be dual-fueled with natural gas as its primary source and ultra-low sulfur diesel (ULSD) oil as a secondary back-up fuel. The ability to generate electricity using ULSD instead of natural gas, when required, will support the resiliency of New York’s electricity system during periods of extreme winter weather when gas supplies may become constrained. There would be gas and steam turbine generation units to create electricity. An air cooled condensing system will be used to eliminate the use of cooling water and minimize the facility’s overall consumption of water. A major benefit of the modernization is quick-start equipment which will allow the plant to power up in as little as one hour, as opposed to the 11 hours the current plant takes today.
Power plant run-time
Power plant run-time
The New York Independent System Operator (NYISO) is the organization that controls the state’s energy grid, and makes the decisions on when different power producers need to run statewide. Ultimately, NYISO will determine how often Danskammer runs, whether the plant is modernized or not. They have indicated that when planned retirements of existing facilities in the region occur, newer plants like the one Danskammer is proposing, will be called upon to run much more often.
According to Danskammer, the new plant would use approximately 50% less fuel on a per-megawatt-hour basis that the existing plant uses today. However, current models show that a new Danskammer could run approximately 70% of the time which would equate to over 7 times more local emissions.
What are they Not REVEALING?
What are they Not REVEALING?
In Danskammer's EXHIBIT 8, "Electric System Production Modeling" the company submitted an estimated capacity factor for the project as well as an average annual monthly production output on Page 4. However, these numbers have been censored to the public.
Increasing Production
Increasing Production
Expanded Capacity
Expanded Capacity
Central Hudson Gas & Electric delivers electricity and natural gas to residents of a 2,600-square-mile service territory that extends north from the suburbs of metropolitan New York City to the Capital District at Albany.
The company has indicated that their gas metering yard near the plant will need to be upgraded and that it may become as much as four times larger than the existing yard. The upgrades will be constructed, owned, and operated by CHGE. They will provide more capacity and expanded to allow maintenance during continuous operation of the existing power generating facility during construction (EXHIBIT 36, pg 1).
There are two pipelines feeding the metering station through CHGE’s gas network: A 12-inch Tuxedo to Poughkeepsie-Danskammer (TPD) spur and a 16-inch Mahopac to Poughkeepsie-Roeston (MPR) spur. These lines will remain in place and continue to serve the energy center. The new gas interconnection will be located within the existing high-pressure metering station.
A Bigger Fuel Tank
A Bigger Fuel Tank
Currently, there is one 682,000-gallon, fuel oil storage tank at the generating station. Danskammer's proposal seeks to decommission and demolish this tank and construct another one in its place that is double the size. This ULSD storage tank would hold 1.7 million gallons and maintain a capacity of less than 300,000 barrels to meet the definition of an exempt storage vessel.
The U.S. Environmental Protection Agency requires a Facility Response Plan (FRP) when: (1) total storage capacity exceeds 1 million gallons; and (2) the facility is located at such a distance from a water body that a discharge from the facility could result in injury to fish, wildlife or other sensitive environmental resources (EXHIBIT 33, pg 2).
The plant would consume approx 24,000 gallons per hour of ULSD at full load under extreme winter operating conditions (EXHIBIT 37, pg 2). Danskammer anticipates that use of the back-up fuel will be limited to a maximum of 720 hours [30 days] per year (EXHIBIT 37, pg 7).
Less Tax Revenue
Less Tax Revenue
Danskammer currently operates under a "Payment In Lieu Of Taxes (PILOT)" agreement and would is seeking special arrangements for the new proposed facility as well. Tax assessments for public utilities are based on construction costs and not property value.
The company projects that a modernized facility would have more than $50 million tax impact over 15-20 years. That equates to an estimated $2.5 - 3.3 million per year. The previous plant was responsible for revenue that generated almost 10 times this amount in tax obligations before the company filed bankruptcy. Therefore, this fractional amount of tax revenue is unjustifiable if the plant is anticipated to be running at 70% capacity.
Public Opposition
Public Opposition
Municipalities that have stated their opposition to the Danskammer proposal include the cities of Newburgh, Beacon, Kingston and Peekskill, the villages of New Paltz and Cold Spring, and the towns of Saugerties, New Paltz, Philipstown, Rosendale, Esopus, and New Castle. Conservation minded organizations such as the Hudson River Sloop Clearwater also oppose the construction of the facility.
Danskammer and CLCPA
Danskammer and CLCPA
New York Public Interest Research Group (NYPIRG) claims that Danskammer’s final stipulations contradict the recently passed Climate Leadership and Community Protection Act (CLCPA) passed by New York State that aims to have 100 percent renewable electricity by 2040. If a new Danskammer goes online, it will probably be the last fossil fuel power plant to go online in the state, however it still exceeds the timeline which would likely make it in violation of the CLCPA. In addition, the new plant is poised to use natural gas derived from the controversial fracking process which has been outlawed by Governor Andrew Cuomo. The governor has prohibited the practice of fracking in New York but has stopped short of prohibiting new power plants from using gas collected via fracking in other states.
Danskammer claims that it is supportive of the new CLCPA and believes in a responsible transition to a renewable energy future. Their perspective is that a modernized facility significantly reduce the emissions that lead to climate change and will also help serve as a bridge to meeting our renewable goals. Their proposal is a private investment that would not preclude investment in other statewide energy production efforts. If Danskammer’s re-powering permits are not granted, the facility would continue to operate as it does today, and the space would not be available for battery storage.
Specific Demands
Specific Demands
Earthjustice has submitted comments on behalf of Sierra Club and Orange RAPP (Residents Against Pilgrim Pipelines) that state Danskammer must undertake a more robust and realistic alternatives analysis.
In order to demonstrate that the proposed facility is in the public interest, Danskammer must first establish that there is a public need for a new natural gas power plant.
Danskammer must also examine whether any such need is best met with its proposed gas plant, or whether other options would most suitably meet that need in line with state objectives and the public interest.
The company needs to provide a vigorous alternatives analysis aimed at evaluating which option is best suited to promote public health and welfare while considering greenhouse gas emissions associated with the extraction and transmission of fossil fuels imported into the state.
Danskammer’s stipulations reveal significant flaws in the company’s approach, including the failure to assess a robust no action alternative, examine all technology alternatives, and perform a rigorous benefit-cost comparative assessment of alternatives accounting for differences in project lifetime.
These deficiencies need to be addressed if the company plans to proceed with their submitted application.
Energy Alternatives Need To Be Considered
Energy Alternatives Need To Be Considered
New York Public Interest Research Group has filed the following comment:
New York Public Interest Research Group has filed the following comment:
"In the introduction of the PSS, section 1.1, Danskammer mentions 'renewable energy' as a portion of the $15 billion they have made in energy investments. If Danskammer has the capacity and knowledge to generate clean, green renewable energy, they should be sent back to the drawing board and resubmit a proposal that does exactly this, similar to what recently happened with Glidepath in the Town of Ulster."
Danskammer must evaluate any reasonable renewable energy supply source alternatives in Exhibit 9 using the criteria set forth in Siting Board regulations at 16 NYCRR § 1001.9(h). However, energy production using bio-bass is a viable option which has not been explored in their application.
Join our public action!
Join our public action!
The Hudson Valley wants clean, environmentally responsible power generation solutions for our future. We are willing to negotiate construction plans with new and innovative technologies, but the final design must align with our community's interest.
We can implement a green and circular system to build a future alongside Mother Nature.
No Shortage of Power
No Shortage of Power
Indian Point nuclear power plant, in Bushanan, NY, generates 2,000 MW and produces about 12% of the state's energy. It is scheduled to be shut down by 2021. Some argue that Danskammer is necessary to fill the resulting void in the state's energy supply. However, a report from Synapse Energy Economics, Inc. (commissioned by the NRDC and Riverkeeper) estimated “that over the next decade there is enough energy efficiency in the regions near Indian Point to reduce peak demand by nearly 1,570 MW – above and beyond the efficiency savings currently assumed by NYISO in their load forecasts.”
A Unique Example
A Unique Example
In March 2019, for two weeks, Indian Point nuclear power did not generate a single megawatt of power, yet, there were no disruptions to New York's power supply. During this time, NYISO data shows that the largest increase in natural gas’ contribution came on March 18th. On this day, wind and solar contributed about 6.5% of the state's energy mix while hydropower was at 28.43%. The data can be compared to contributions on March 13th, two days before the shut down.
This comparison is not a perfect analogy because the state's daily fuel mix depends on a number of factors. Demand can also vary in the region. However, the scenario provides evidence that a new 535 MW Danskammer natural gas power plant is not essential to keep the electricity on.
New York's Natural Gas
New York's Natural Gas
Source
Source
New York holds less than 0.03% of the nation's total natural gas reserves, and the state has 26 natural gas underground storage facilities (USEIA). Most of the natural gas consumed in New York is supplied by pipelines from other states and Canada. An increasing share comes from the Pennsylvania Supply.
Fracking
Fracking
The hydraulic fracturing (fracking) process is essential to extracting natural gas from the Marcellus and Utica shale, as well as other geological formations. The Marcellus Shale formation can be found beneath about 60 percent of Pennsylvania’s total land mass, where it is buried to depths of up to 9,000 feet.
Energy Portion
Energy Portion
In 2018, almost two-fifths of the state's electricity net generation came from natural gas. More than half of New York's generating capacity is at natural gas-fired power plants, and about two-thirds of that capacity is at units with dual-fuel capability that can use either natural gas or petroleum.
Article 10
Article 10
Application of Danskammer Energy, LLC for a Certificate of Environmental Compatibility and Public Need Pursuant to Article 10 for Approval to Repower its Danskammer Generating Station Site Located in the Town of Newburgh, Orange County.
Major electric generating facilities larger than 25 MW are sited according to New York State’s Article 10 law. This comprehensive law provides guidance to the New York State Board on Electric Generation Siting and the Environment (Siting Board) about authorizing construction and operation of major electric generating facilities. The Article 10 law streamlines the application process for developers, while providing a rigorous process for local input and ensuring environmental and public health laws are followed. The public can participate in the Article 10 decision-making process by offering support, voicing concerns, or asking questions about public health, safety, the environment, and other factors. This process begins during the initial planning of the facility and continues throughout the siting review, construction, and operation.
About Danskammer
About Danskammer
The Newburgh Danskammer facility is Danskammer Energy, LLC’s only asset. The owner, Bill Reid, was born and raised in the Hudson Valley. Reid’s father was a local congressman that represented Westchester County. The management team for Danskammer Energy is made up of five people who have lived or worked in the region for many years.
The staff working at Danskammer all live in the surrounding area, and many are lifelong residents of the Hudson Valley. The CEO and CFO of Danskammer Energy grew up in Westchester and Putnam counties, respectively.
While under previous ownership, Danskammer was sold in 2013 as part of a bankruptcy proceeding. This event did not involve the current owners of the plant. In 2017 the current owners purchased the plant with the idea of modernizing the facility to be cleaner and more efficient as New York works to achieve its renewable targets.
Private Equity
Private Equity
Danskammer Energy partnered with Tiger Infrastructure Partners to acquire the Danskammer Generating Station from Mercuria Energy Group in December 2017. Collectively, they have made over $15 billion in energy investments, developed 15,000 MW of renewable and conventional power generation facilities, managed over 17,500 MW of power capacity, and are focused on developing, acquiring, and managing investments in the power sector.
Tiger Infrastructure Partners is a middle-market private equity firm that invests in growing infrastructure platforms. The company target investments in communications, energy, transportation, and related sectors, primarily located in North America and Europe. Tiger Management and other sophisticated institutional investors are key investors in their firm.
Tiger Management Corp., also known as "The Tiger Fund," is an American hedge fund and family office founded by Julian Robertson. The fund began investing in 1980 and closed in March 2000. It continues to operate today in direct public equity investments and seeding new investment funds.
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