There are approximately 240 existing coal-fired power plants in the U.S. which are on a steady rate to be decommissioned and demolished over the next 10 to 15 years. Over the last decade, the U.S. has shut down or announced plans to retire more than 65% of its coal power plants. Nearly 58 GW of U.S. coal-fired power plant capacity is projected for retirement by 2030, according to S&P Global Market Intelligence data, with the potential for the Inflation Reduction Act to accelerate the trend. The steady decline in recent years comes as utilities and power plant owners retire coal-fired power plants due to stricter Environmental Protection Agency (EPA) policies and increased state and local legislation efforts to meet emissions goals to reduce greenhouse gases (GHG). In addition, they recognize the opportunity to improve operational efficiencies as other power generation options become more economical or may align better with the utilities long term strategic objectives.
With this increased need to retire and decommission older generating assets around the country, the question then becomes how this decommissioning and remediation work can be carried out in an economical and environmentally-friendly manner, removing the risk from the utilities and minimizing their costs while benefiting the surrounding communities by improving the environment and driving local economic growth. For each decommissioning project, innovation and customization is key. By implementing proper planning and having the right partners in place, both environmental and economic success at the utility and local community levels can be ensured resulting in enormous opportunity to revitalize an area to a clean economically contributing business source to the local and surrounding area.
Charah Environmental Redevelopment Group, LLC (Charah) is a wholly owned subsidiary of Charah Solutions, a leading provider of environmental services and byproduct sales to the power generation industry with over 35 years of experience. Charah has done just this for multiple utility partners at decommissioned power plant sites around the country. Charah’s Environmental Risk Transfer (ERT) services provide innovative solutions to large-scale, complex environmental decommissioning, remediation, and reuse projects that utilities and power plant owners around the country are facing as more coal-fired power plants are shuttered.
These large-scale projects typically involve shutting down, decommissioning, and demolishing or repurposing the existing coal-fired power plant and support structures, remediating onsite ash ponds and landfills, and restoring the land. Charah‘s ERT services provide a custom, environmentally-friendly approach to these projects, which removes the liability from the utility through the acquisition of the property, decommissioning of the power plant and associated facilities, and environmental remediation of the ash ponds and landfills to meet all local, state, and federal regulations.
The repurposing of the remediated site typically includes uses such as renewable energy or other forms of energy generation, data center, light industrial, restoration of natural habitat for marine and other wildlife, community use areas, or mixed-use including retail while the scrap metals from the plant are recycle and the ash from remediated site ponds and landfills are beneficially recycled in the production of “Green Concrete.” This ERT approach not only benefits the environment but also provides economic benefits as it creates local professional and trade jobs, contributes to local business activity, supports the tax base, and lowers the costs for the utility and its ratepayers.
Eliminating Utilities Risks While Benefiting The Environment And Communities
Utilities or power plant owners can typically choose to tackle power plant decommissioning projects in one of two ways – 1) self-perform the decommissioning work or 2) sell the property and all of the assets to a company, such as Charah, which then performs the decommissioning work, environmental remediation work, and repositions the property for future use while assuming related environmental liabilities. Benefits of selling the property and transfer of the environmental liabilities to another company with the proven track record of Charah and the ability to execute include:
- Elimination of all environmental risk and obligations related to the retired asset from the utility’s balance sheet as these risks are transferred as part of the agreement
- Controlled and known cost investment to complete the project as an upfront amount is determined, and the responsibility is then transferred at time of acquisition
- Reduced cost exposure to ratepayers and shareholders
- Already secured financing and strong fiscal capabilities to ensure budget success for completion of the entire project
- Shorter time to project completion as these services are completed at a faster pace given the expertise and experience of handling these specific services on a daily basis including power plant shutdown, demolition, asbestos removement, remediation of the coal combustion residuals (CCR) ponds and landfills, marketing of the byproducts for reuse into multiple industries, design engineering, CQA/CQC testing, assessment and planning and execution of the land reclamation plan, working with the local and state government bodies to ensure project completion and economic benefit.
- Streamlined management of a single partner to handle turnkey decommissioning, remediation, and repurposing work at the site versus qualifying, hiring, and managing a large number of contractors to handle the many specific tasks that need to be completed throughout the course of the entire project
- Proven partner who fully understands the environmental impact of the project and is qualified to meet the federal, state, and local regulations for each step of the remediation and reclamation process
- Unique property redevelopment opportunities and synergies that include data, renewables, battery energy storage systems (BESS), and other sustainable investments through SER’s ownership of Charah Solutions and strong relationships with SER’s other portfolio companies
Innovative ERT Services That Drive Cost Savings And Results For Utilities
Charah has had great success utilizing its innovative Environmental Risk Transfer (ERT) services model with multiple utilities around the country which provides upfront costs savings and balance sheet improvement to the utility and ongoing partnership throughout the reclamation process.
Gibbons Creek Steam Electric Station and Reservoir
An example of Charah Solutions’ turnkey ERT services is its acquisition, remediation, and repurposing of Gibbons Creek Steam Electric Station and Reservoir in Grimes County, Texas following the coal-fired power plant’s shut down and decommissioning in 2018. Through the agreement with the Texas Municipal Power Agency (TMPA), Charah took full ownership of the 6,166-acre area, including the closed power station, the 3,500-acre reservoir, dam, and spillway. The Company assumed all responsibility for the demolition of the power plant and performed the environmental remediation work for the site landfills and ash ponds while providing repurpose opportunities. Today, that work is essentially complete, pending the final regulatory approval process. Ninety-eight percent of the property has been sold or is under contract and the property is already being developed for future energy generation and other data mining purposes which utilize the existing transmission system and maximization of the reservoir. By repurposing the property in an environmentally-conscious manner, Charah has expanded economic activity and benefited the surrounding communities through job creation, support of local contractors for portions of the project, promotion of industry, and support of the tax base.
B.C. Cobb Generating Facility
Remediating the existing ash ponds at the Consumers Energy (Consumers) former B.C. Cobb Generating Facility near Muskegon Lake in Muskegon, Michigan was part of the post-closure regulation needs and sustainability objectives for the site and community in order further advance the natural occurring wetlands along the eastern shore of Lake Michigan. Charah Solutions approached Consumers with an innovative and cost-effective proposal to meet these goals and provide remediation of the ponds and repurposing of the site. This comprehensive solution provided effective management of all environmental aspects to safely close and enhance the site for the benefit of the community, while lowering the cost for Consumers and its customers, hiring 25 local operators as well as using local vendor partners to assist with the remediation work at the site. The turnkey ERT services for the project included the property acquisition, the full remediation of the existing ash ponds while further advancing the wetlands along the eastern shore of Lake Michigan, and the beneficial recycling of over 650,000 cubic yards of ash materials, sustainably repurposing of the property. Upon completion, the B.C. Cobb ash ponds, including ponds 0-8 and the bottom ash pond on the property totaling 62.8 acres, will be fully returned to natural wetland areas for the benefit of the watershed and for the community to enjoy.
Today, the construction work is complete, pending the final regulatory approval process, and post-closure monitoring and reporting is underway. Charah is working with the customer on next steps for project completion.
Avon Lake Generating Station
In April 2022, Charah acquired the 627 MW coal-fired Avon Lake Generating Station in Avon Lake, Ohio and adjacent property from GenOn for the shutdown and decommissioning of the coal power plant and performing all environmental remediation and repurposing work at the site. This property consists of multiple parcels of land adjacent to the generating plant, including the generating station, submerged lands lease in Lake Erie, substation/switch gear and transformers, administrative offices and structures, coal rail and storage yard parcels as well as the interconnection agreement. Charah has worked with the City of Avon Lake and will position the property to expand economic activity to benefit the surrounding communities through job creation while sustainably remediating the site for the betterment of the environment and for the citizens of the local communities. To date, asbestos abatement has been completed and Charah has cleaned and remediated the coal yard and associated ponds. Demolition and salvage are underway with expected completion in mid-2025.
Cheswick Generating Station
Also in April 2022, Charah acquired the retired 565 MW coal-fired Cheswick Generating Station in Springdale, Pennsylvania and adjacent property from GenOn for the shutdown and decommissioning of the coal power plant and performing all environmental remediation and repurposing work at the site. The 56-acre primary generating station site, located outside of Pittsburgh and along the Allegheny River, along with an adjacent 27-acre parcel, consists of an operating rail line, a coal yard, bottom ash emergency and recycle ponds, waste ponds and a coal pile runoff pond, coal delivery equipment, and an ash handling parcel. To date, asbestos abatement has been completed and Charah has cleaned and remediated the coal yard and associated ponds. Demolition and salvage are underway with expected completion in mid-2025.
Charah plans to redevelop the generating station and other properties in an environmentally conscious manner that will expand economic activity and benefit the surrounding communities through job creation, promotion of industry, and support of the tax base while enabling the site to provide the best potential use for the community moving forward, all while sustainably remediating the site for the betterment of the community. Potential redevelopment uses for the properties include data, renewable energy, and battery storage options that utilize the existing transmission infrastructure, transportation and logistics that utilize the river shipping assets, and other potential industrial uses.
On A Mission To Decommission
With the growing shutdown and decommissioning of coal-fired power plants over the next decade, the mission is very clear for the many utilities and power plant owners responsible: eliminate environmental risks, minimize and control costs, meet emissions reduction timeline goals and drive economic and environmental benefits to the local communities. All of these very important elements must be met for project success, and it is the responsibility of the entire industry to ensure this increasing number of decommissioning projects provide maximum economic growth, use existing infrastructure, create job creation during operation and the best possible environmental benefits for communities upon completion. Sustainable and economical solutions like Charah’s innovative ERT services will provide utilities with the best path forward to accomplish this mission.
Scott Reschly is President of Charah Environmental Redevelopment Group, LLC