What are the details of the new project?

The new unit will generate 750 MW of electricity, enough to provide electricity for 75,000 homes. The Toquop Energy Project includes construction and operation of a 750-megawatt, coal-fired power plant and associated facilities. It would include a 31-mile rail spur that would link the new plant to an existing rail line and would be used to transport coal to the plant. The Toquop Energy Project would be located on land managed by the Bureau of Land Management (BLM) in southeastern Lincoln County, Nevada.


Why is the new plant needed?

The purpose of the new power plant is to generate electric power at a competitive price for use by consumers and to serve the growth in demand for power in the region. Rapid population growth in southern Nevada and the Las Vegas and Phoenix areas have increased the demand for power. In addition some generating plants in the Southwest, including the 1,500 megawatt Mohave Plant in southern Nevada, are facing retirements that would further drive the need for additional generation.


What studies are being conducted to determine if this project will have environmental impacts?

The BLM, as the current land manager for the site, determined that an EIS would be prepared to evaluate the differences between the previously permitted project and the current proposed Toquop Energy Project. An EIS is being prepared in accordance with the National Environmental Policy Act of 1969 and associated regulations. The BLM Ely Field Office is the lead agency for this effort. Through the process of developing the EIS, potential impacts of the plant will be evaluated and mitigation measures identified, as appropriate.

There also will be permitting requirements from other agencies. These include a Prevention of Significant Deterioration permit in accordance with the Clean Air Act, and permits required under Section 404 of the Clean Water Act. These permits establish control technology standards that ensure compliance with applicable environmental regulations.


How much water would be required to operate the proposed power plant, and what would the source of water be? Will the use of water for this plant affect the water supply in southeastern Nevada?

Because it will use dry-cooling technology, the proposed Toquop Energy Project would require 2,500 acre-feet of water per year. This is 65 percent less than the projected use for the previously permitted natural gas-fired power plant, and 80 percent less than a conventional water-cooled coal-fired plant.

Newly developed wells located in the Tule Desert approximately 12 miles north of the plant site would provide the water for the project. About 2,100 acre-feet have already been permitted by the Nevada State Engineer. The 2003 EIS concluded that pumping water from this aquifer would not result in a substantial decline in groundwater levels or a substantial depletion of groundwater resources (this document, the Proposed Toquop Land Disposal Amendment to the Caliente Management Framework Plan and Final Environmental Impact Statement for the Toquop Energy Project, is available on the BLM web site, www.toquopenergy.com). Although the effects of water use will be discussed in the EIS, it is anticipated that any effects would be reduced from that of the previously proposed plant, due to the substantial decrease in water requirements.


How much wastewater will be generated each year and how will it be disposed?

Efficient water use allows the plant to be designed as a zero discharge facility. Nothing but stormwater will be discharged. No wastewater would have to be disposed.


How would the plant’s byproducts (like fly ash) be disposed?

The primary goal will be to find commercial markets for all byproducts produced. For example, fly ash may be used in building materials. In the event that there are no markets for any of the byproducts, they would be land-filled near the plant site. The landfill would be designed to comply with all applicable regulations, and would be analyzed in the EIS.


When will the project be completed?

The unit is scheduled to be completed and operating by 2013.


Where would this power be used – what markets would be served?

The markets that would be served by this power plant would include southern Nevada (including the Las Vegas metropolitan area) and Arizona.


What kind of environmental controls will be used?

The Toquop Energy Project will utilize the most advanced air emissions controls in the world. Click here to find out more.


Is there something Toquop can do about CO2 emissions?

Toquop continues to study the technology and cost of what is called Carbon Capture and Sequestration (CCS) in power plant applications. We have had numerous conversations with the Department of Energy, various national laboratories, equipment suppliers, and regional concentration groups to understand the ability to implement the technology in a large scale application like the Toquop project. At this time we are unable to identify a commercially feasible means to enable this technology. Major equipment suppliers are unwilling to offer performance guarantees for equipment so large. There is no proven means to sequester the CO2 at this time. In addition, an appropriate mechanism to recover the cost of implementation, including the cost of development, installation and operation, has not yet been implemented or discovered.


How many jobs will this project create?

The project will have an average of 800 union construction jobs over a four-year period. It will also create 110 permanent jobs to operate the power plant and coal mine.


Does the Desert Southwest need more electricity?

This region of the United States is growing at a very fast pace. The Western Electricity Coordinating Council identified the Arizona/New Mexico/Southern Nevada sub-region of the western United States as an area in need of additional power generation to sustain growth. Click here to find out more.


Where will the new project be located?

The project will be located near the Toquop Wash, approximately 50 miles south-southeast of Caliente, Nevada, and 13 miles northwest of Mesquite, Nevada in Lincoln County, Nevada.


Why propose a coal-fired plant when a natural gas-fired plant has already been permitted for this location?

Since 2003, when the natural gas-fired power plant was permitted, the price of natural gas has increased substantially. It is estimated that natural gas prices will remain volatile due to higher demand and greater exploration and development costs. The unpredictability associated with natural gas reduces the probability that the gas-fired plant would generate reliable and competitively priced power. Due to the use of new technology for coal-fired power generation and the availability of reliable coal supplies, Sithe Global determined that a coal-fired plant could more efficiently produce power to meet regional demands while still mitigating environmental concerns.

Why aren't you building a coal gasification power plant?

Integrated Gasification Combined Cycle (IGCC) is a developing coal technology that offers the potential for improved environmental performance and high efficiency. IGCC technology is not proven using low btu, high ash content coal like Powder River Basin coal. Recent studies show that for carbon sequestration, the modern pulverized coal technology may provide a better alternative than IGCC. Read more here about IGCC.


Is the power plant really going to be built?

Major utility companies in the region are talking actively with the project about committing to long-term power purchase agreements that will sustain the development and operation of the project.


When will construction start?

First quarter of 2009.