Hit by further delays, Mississippi Power Co. has conceded it needs to extend the construction schedule for its Kemper County integrated gasification combined-cycle (IGCC) plant by yet another month, which increases costs by $62 million. The project’s total price tag now stand at nearly $6.9 billion – start-up has been pushed back to November 30.
Documents filed with the Mississippi Public Service Commission indicate that the operator Mississippi Power will cover $33 million of the cost increase, but customers might well have to pay the other $29 million. Analysts estimate that end-customers could ultimately pay as much as $4.2 billion for the plant, although regulators will determine the final amount.
In August, the operator already had to announce a $43 million cost overrun and delayed the planned start-up to October 31. Now, the schedule has been extended even further, making venture one of the longest construction projects in the US in recent years.
Hick-ups with syngas production system
The power plant portion produced electricity for Mississippi Power customer since August 2014. However, there have been difficulties and delays at the plants “front end” – notably surrounding the production of syngas, using the transport integrated gasification technology or TRIG.
Once fully operational, the Kemper IGCC will produce electricity with a syngas-only net output capability of 524 MW and with a peak net output capability of 582 MW. The pilot project will be a first-of-its-kind electricity plant to employ gasification and carbon capture technologies at industrial scale.