Colorado Springs Utilities will pay $73.5 million to Neumann Systems Group to design and install emissions control technology for CSU’s Martin Drake Power Plant.
The contract also includes an incentive based on meeting cost and performance goals.
The technology, NeuStream, will remove sulfur dioxide from the emissions of the coal-fired plant, allowing utilities to comply with new regional haze air pollution requirements in Colorado and support the concept of clean coal for power generation, according to a CSU press release.
The formal agreement is the result of years of collaboration between Neumann Systems and CSU. The NeuStream has been tested at CSU to make sure it performs as expected. Last year, it passed necessary assurance tests that gave it the green light to continue.
“This is great news for our community. NeuStream will save money for Colorado Springs Utilities’ ratepayers because it will be installed at lower cost than traditional scrubbing technology and will require less operating and maintenance expenditures,” said Scott Hente, chairman of Colorado Springs Utilities’ board in the release.
Neustream is compact – requiring a smaller footprint than traditional technology, which makes installation of emission control technology at the small downtown power plant campus feasible. It also prolongs the life of aging coal-fired plants because it doesn’t require room for expansion.
Neumann Systems said the new contract will create local jobs, and some local firms will participate in the design, manufacturing and construction work associated with the project. Work will begin this fall, and the project is schedule to be completed in 2014.
Neumann will also be using its pilot project at CSU to test to see if the same technology can be used to remove carbon dioxide emissions from the Drake Power Plant. It received a $7.2 million grant from the Department of Energy to conduct the research.
The CSBJ toured the Neumann project at Drake Power Plant last fall. Click here to read the story.