Delaware has issued an air quality construction permit and awarded grant money to NRG Energy Inc. as it begins a $26.5 million project to convert one of its power plants from coal to natural gas.

The Delaware Department of Natural Resources (DNREC) announced last week that NRG, which is converting the Dover Energy Center, will receive a $500,000 grant from the Delaware Energy Efficiency Investment Fund. It is the first time grant funding has been issued since the Delaware General Assembly established the fund in 2010.

NRG said the Dover Energy Center was built in 1984 and commissioned in 1985. It currently contains a 190,000 pound per hour steam boiler that is powered by coal, along with two 45 MW simple cycle combustion turbines and an 18 MW electrical steam turbine generator.

Under the conversion plan, NRG will retire the coal-fueled boiler and replace it with one powered by natural gas with low nitrogen oxide (NOx) emissions. One of the two combustion turbines will be converted to a combined cycle operation with a heat recovery steam generator and additional emissions control equipment.

The DNREC said it expects the project — which it plans to begin in April and have completed by June 2013 — will create up to 75 jobs and improve fuel efficiency at the plant by 30%.

“This project represents another significant milestone for Delaware, as we transition to a cleaner energy economy,” Gov. Jack Markell said while touring the plant last Tuesday with DNREC Secretary Collin O’Mara, who added “This project will transform the state’s last legacy coal burning unit into one of the cleanest heat and power generators in the country.”

According to the DNREC, once the conversion at the Dover Energy Center is completed, the only power plant in the state that will still be using coal is the Indian River Power Plant, which is also owned by NRG. The company said it is currently spending $360 million on emissions control system upgrades at Indian River.

The DNREC the Dover Energy Center’s conversion will prevent more than 4 million pounds of sulfur dioxide, 800,000 pounds of NOx and 120,000 pounds of particulates from being emitted into the air annually. The conversion will prevent the releases of 117,000 pounds of hydrochloric and sulfuric acid and 14 million pounds of fly ash and bottom ash. Most mercury and lead emissions would also be eliminated.

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