Competitive Power Ventures (CPV) has selected West Virginia to be the home of an 1800 MW natural gas fired combined cycle plant to utilize carbon capture and storage (CCS).
The multi-billion dollar project will go into operation later this decade but is without a firm timeline.
U.S Sen. Joe Manchin (D-W.V.), who was at the project announcement, said it wouldn’t be possible without the Inflation Reduction Act (IRA). The legislation expands the 45Q tax credit to incentivize the use of CCS.
45Q incentives in the law increase from $50 to $85/metric ton for storage in saline geologic formations from carbon capture on power generation facilities. The incentives also increase from $35 to $60/metric ton for utilization from power plant carbon capture.
The credit can be realized for 12 years after the carbon capture equipment is placed in service and will be inflation-adjusted beginning in 2027, according to the law.
Construction on CPV’s combined cycle plant will employ more than 1,000 people from across the region, including prevailing wage labor and apprenticeships, to fulfill the requirements created by the IRA.
“Pennsylvania and Ohio have built numerous combined-cycle natural gas power plants over the last few years,” said Chuck Parker, president of the WV State Building & Construction Trades Council. “Now it is finally West Virginia’s turn. We have been training our members for a project like this and will be able to supply the workforce needed.”
The project has been in the works for over a year and has already started the regulatory approval process. We have asked CPV who is supplying turbine and generator equipment and will report more when we have the latest.
Earlier in 2022, West Virginia enacted legislation establishing state rules for carbon sequestration.
CPV has 7,335 MW of generating facilities in nine U.S. states.
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