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PSEG Power to Install Advanced Emissions Controls at Hudson Station Coal Unit in Jersey City


Decision reflects commitment to provide region with environmentally responsible energy

PSEG Power said today it will proceed with installing advanced emissions controls at its Hudson Generating Station coal-fired Unit 2 in Jersey City under terms of an amended environmental agreement reached last fall with state and federal regulators. Completion of the retrofits by 2010 will allow long-term, continued operation of the unit.

William Levis, president and chief operating officer of PSEG Power, said this decision is consistent with the company’s commitment to provide New Jersey and the region with reliable and environmentally responsible energy supplies.

“The work at Hudson will result in significant reductions in emissions of nitrogen oxide (NOx), sulfur dioxide (SO2), particulates, and mercury, meeting the commitments we made in the consent decree,” Levis said. “It removes any uncertainty about Hudson’s future. Our objective is to assure those who live and work in the surrounding communities, as well as our employees who work at the plant, that we intend to provide safe, environmentally responsible energy for the foreseeable future.”

Hudson Unit 2 is a 608-megawatt coal unit. The work at Hudson includes installing selective catalytic reduction (SCR) for NOx reduction; flue-gas desulfurization (scrubber) for SO2 reduction, a bag house for particulate matter reduction, and carbon injection for mercury control. The project will be completed by the end of 2010 and will cost between $700 and $750 million. The project will create approximately 450 jobs at the peak of construction, create approximately 13 new positions and preserve the other 120 full time positions operating the facility for the long term.

In January 2002, PSEG Power reached an agreement in the form of a Consent Decree with the New Jersey Department of Environmental Protection (NJDEP) and the United States Environmental Protection Agency (USEPA) that called for installing the advanced emissions controls over a 10-year period. This agreement stemmed from discussions initiated by PSEG Power to resolve concerns over compliance with the New Source Review provisions of the federal Clean Air Act.

Shortly after the Consent Decree was finalized, however, significant changes in energy and capacity markets and increases in the cost of emissions control equipment and other necessary plant modifications called into question whether it would be more prudent to perform the work at Hudson or shut down the unit. The amended agreement required the company to make a decision by the end of 2007 whether to complete the environmental retrofit by the end 2010 or shut it down by 2008.

“The energy and capacity landscape is very different today than it was in 2002 when the Consent Decree was put in place,” said Levis. “Projects which looked questionable at best five years ago now make sense. This is a clear sign that PJM’s new rules for capacity under the reliability pricing model are working. Companies can make disciplined investment to ensure system reliability and protect the environment.”


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