Steam-powered electric generating plant: It’s time to consider it

I’m told the government-owned power plants consume 10 million 200 thousand gallons of oil a year.

Oil prices will never decline and we can expect to see continuous increases in all oil using activities and electric rates in particular. This has been true since the first oil crises 35 years ago in 1973. That was the year the U.S. government stated its policy of becoming oil independent. Since that date all of the Pacific islands have experienced spiraling costs. I would like to suggest that the CNMI consider undertaking a first phase “pre-feasibility study” to determine the plausibility for the conversion, particularly for Saipan, of government-owned, oil-fired generators to that of coal burning, steam turbines.

Should the results look promising, then the second phase could be undertaken to prepare the full-fledged detailed financial and economic analyses to determine the cost and benefits to determine if such would be viable over the long-term.

With oil you get two things: fumes up the stack and power. With coal you get three things: fumes up the stack, power and cinders, which are a useful aggregate for construction blocks and other uses. Coal mines can be purchased which have recoverable reserves that would last the island for many decades, perhaps even one-half century or longer. The state of West Virginia, for example, with its thousands of privately owned coal mines, has enough recoverable reserves of coal to meet the world demand for coal for the next 400 years. It’s possible to buy a coal mine but you will never be able to purchase a Middle East oil well.

Until the late 1950s almost all electric power in the world was produced by coal-fired, steam turbine driven generators. When Middle East oil fields were developed and oil prices were $2.50 a barrel everyone switched to this cheaper fuel and away from the use of coal. Now oil prices are around $120 a barrel and it’s worthwhile to consider returning to the use of coal with due consideration given the environment since the cinders from spent coal will leach an acid into the soil and this most certainly must be mitigated. Also, the discharge from the stacks into the atmosphere will have to be controlled by new, existing technology called “scrubbers” which meet EPA Clean Air Act standards. This equipment cleans the vaporous discharge as it’s released into the environment. Ideally the generating plant should be situated to take advantage of the prevailing winds and be located adjacent to or near the port to facilitate the off-loading of coal.
Following the completion of the pre-feasibility study any recommended second phase leading to the detailed cost – benefit study would have to be comprehensive in scope and thus it will be expensive and would have to be conducted by professional consultants experienced in this type of power generation. The cost of coal delivered to Lower Base, port and construction of the discharge terminal, storage areas, the power plant and operation would all have to be analyzed. That this endeavor would be both complicated and controversial, particularly on the part of existing oil producers and brokers, is a certainty. It all boils down to economic self-interest.

As mentioned previously in these articles, a coal-fired generator is one possible solution that may well be reasonable and viable if the stranglehold of “environmental purists” can be broken and “trade-offs” accepted.

From what I have been able to determine the price of coal at some mine portals is $60 to $65 per ton depending upon the ash content, BTU and other factors. The question to be posed being how that price per ton equates in terms of electricity production as compared to one-half barrel of oil at $120 per barrel? That important information together with the added cost of transportation from the mine to Saipan; the amortization of the equipment and other financing details must first be determined to evaluate the project’s final viability.

Interior has sponsored several investment promotion missions with limited results. One wonders why the organizers of such visits never considered the potential investment in steam turbines? Perhaps it was never suggested. In my opinion, as based on existing conditions in the NMI, no investment of any substantial size is likely to happen in the Commonwealth until a reliable power supply can be made available at a reasonable cost to project investors. Some knowledgeable experts have expressed the belief that oil could reach $200 a barrel in a couple years. What then?

As mentioned in another article on a different subject I find it surprising that Interior’s Office of Insular Affairs, an agency that professes to want to assist the NMI, hasn’t indicated an interest in supporting the funding for an examination of the feasibility for such power generating conversion. Equally surprising is the apparent lack of interest in the past on the part of the central government and the Legislature in even considering such a request, considering some of the most powerful men in the U.S. Senate are from coal producing states. One who comes to mind is powerful Robert C. Byrd (D-W.Va.). The constituency of many U.S. senators consider coal as tourism is considered for the NMI—it keeps them in office. Coal is mined in 27 states. That’s 54 voting senators in a body of 100—you figure it out. You may have a friend in Jesus but you need them in Washington as well.

Almost 50 percent of all electric power generated in the country is produced from coal, followed by 19.3 percent by nuclear and 18.7 percent from natural gas. All power generated in the U.S. from coal now meets EPA’s environmental emission regulations of the Clean Air Act.

As near as I can figure the equivalent of steam generated electricity sent out from one ton of coal is 2.65 MWh. I don’t know the Saipan CIF cost per ton of coal since it depends upon such things as the quality, i.e., BTU content, the quantity purchased at any particular time, port of export and other factors too numerous to list here-in. If the Legislature doesn’t encourage such an analysis, it could be the death of the NMI as we have come to know it and the return to the days of the Trust Territory, which some feel is already rapidly taking place.