Navajo Generating Station Case Study

The Navajo Generating Station has been in the headlines recently as it's fate is uncertain when the utility owners voted earlier in the year to shut the plant down earlier than expected as they no longer wish to own/operate the plant.  However, a new lease extension for the plant has been signed that will keep the plant operating for two more years.  If the plant is to continue operations beyond 2019, it must prove it can be economically competitive in the region so that a new buyer will have incentive to purchase the plant and continue long term operations.

Peabody has said that they will provide a reduced coal price to new ownership, which should help the economics of the plant, possibly attracting new ownership.  

Over the next couple of weeks, we'll take a look at the Navajo Generating Station and explore why it has some technical merits which make it a compelling generating asset including:

  • Boiler design
  • Heat rate
  • Combustion flexibility for NOx control
  • CO2 capture possibilities