NANCY PIERCE
STEAG Energy Services in Kings Mountain has won the engineering and procurement contracts for a roughly $120 million environmental remediation project for a large coal plant in New Mexico.
The project involves retrofitting two units at the 1,800-megawatt San Juan Generating Station operated by Public Service Co. of New Mexico. The utility owns 52% of the plant.
The construction element of the project will be bid separately. STEAG President Hans Hartenstein says the principal part of the contract is in design and procurement. Neither he nor Public Service would discuss the financial details of the contract.
?It is a significant contract for us,? Hartenstein says.
Under an agreement made in February with the U.S. Environmental Protection Agency, Public Service agreed to install environmental equipment on its 360-megawatt Unit 1 coal boiler and its 544-megawatt Unit 4 boiler by 2016.
Hartenstein says his company is designing a system to inject urea into the boiler to reduce nitrogen oxide emissions from the coal units.
It's called a ?selective non-catalytic reduction? system. It is less efficient than the selective catalytic reduction system used on many large coal plants ?? such as Duke Energy?s Cliffside, Marshall and Allen steam stations. But it is also significantly less expensive to install, STEAG says.
The company says the system, when completed, will remove 20% to 50% of the nitrogen oxides from the plant?s emissions. Hartenstein says the more expensive catalytic processes remove 90% or more of the pollutant.
But the more expensive system was not required by the deal the utility made with the EPA.
John Downey covers the energy industry and public companies for the Charlotte Business Journal.
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