Detroit-based DTE Energy has unveiled plans to spend up to $1.5 billion to construct new gas-fired generating capacity across the US as it needs to replace part of its coal power plants that are due to be phased out by 2023. The utility said it will file a full application for the new-builds with Michigan regulators in mid-2017.
The new-build gas power capacity is meant to have a combined capacity of 1,000 MW – enough to supply electricity to 850,000 homes. CEO Anderson said they will be the source of "cleaner energy”, replacing power plants that run on coal.
Early retirement is planned for DTE’s St. Clair, River Rouge and Trenton baseload coal-fired plants, which are all due to shut down over the coming six years. Until earlier this year, DTE had shut down just 200 MW of older coal capacity, but after its June retirement announcement for the above three plants, DTE has only two remaining coal plants -- Belle River and 3,000 MW Monroe -- that it is not yet targeting to retire.
In total, DTE operates around 12,000 MW of generation, including 6,300 MW coal, 2,700 MW natural gas, 1,100 MW nuclear, 950 MW pumped storage hydro and 930 MW renewables.
First new gas plant due onstream by 2023
One new gas power project is already in an advanced planning stage and is set to be located on existing DTE property next to the 1,395 MW Belle River power plant in China Township, Michigan. St. Clair County board chairman Jeff Bohm called this plan “great news for the local economy.”
This first gas power project – of what might be a series of new-builds – is targeted for commercial operation in the 2021-2023 timeframe.
As for securing gas supply, DTE and Spectra Energy are co-developers of the proposed 255-mile Nexus natural gas pipeline that would carry 1.5 Bcf/d the Marcellus and Utica shale fields to Michigan and Ontario, Canada. Once developers receive FERC’s final environmental impact statement, they can sign up project financing with a view to get construction started in late 2017.