Federal ‘Inflation Reduction Act’ and WV HB4491 credited with making investment feasible
WV News Sharing
CHARLESTON, W.Va. – Competitive Power Ventures (CPV) today (Friday, Sept. 16) announced that it has selected West Virginia for an 1,800 MW combined-cycle natural gas power station utilizing carbon capture and storage.
“CPV is pleased to work closely with West Virginia to bring this project to fruition in the coming
years. This project and technology represent a significant step forward for our nation in deploying low carbon, dispatchable generation critical to maintaining reliability as we address our collective concerns regarding climate change,” said Gary Lambert, CEO of Competitive Power Ventures.
CPV said the project was made financially possible by the advancement of the recently passed federal legislation, known as the Inflation Reduction Act, that expanded the 45Q federal tax credit for carbon capture.
“West Virginia has been extremely forward thinking at the local, state and national level, and we cannot thank Senator Manchin enough for his leadership in making this opportunity possible.”
U.S. Senator Joe Manchin, D-W.Va., was among the government representatives joining Lambert. Manchin said the announcement and the Inflation Reduction Act move the United States closer to energy Security.
“The Inflation Reduction Act is already having a positive impact for the people of West Virginia and carbon capture utilization efforts here in the United States,” said Senator Manchin, who chairs the Senate Energy and Natural Resources Committee. “I’m pleased Competitive Power Ventures is investing in the Mountain State and look forward to seeing the benefits of this investment – including long-term, good-paying jobs and supporting our regional economies – for years to come.”
“To be a super power, you must be energy independent,” Manchin said of the impact of the Inflation Reduction Act and other efforts to increase domestic energy supplies.
Senator Manchin was joined by Bill Bissett, state director of U.S. Senator Shelley Moore Capito, R-W.Va., and Vic Sprouse, Federal Funds and Grants Director at West Virginia Department of Economic Development. Others attending the event included State Senator Glenn Jeffries, D-Putnam; Chuck Parker, president of the WV State Building & Construction Trades Council; other labor leaders and Charleston Mayor Amy Goodwin.
In a message from Sen. Capito, Bissett said the Senator was proud of her work on the IRA, including the direct paid option, allowing certain entities to take a certain specified tax credits in the form of a direct payment:
“Competitive Power Ventures’ multi-billion-dollar investment in this combined-cycle power plant demonstrates that West Virginia can provide natural gas to markets in our neighboring states, as needed energy supplies for our allies abroad, as a manufacturing input here at home and across America, as well as power generation here in West Virginia. I’m proud that my bipartisan work on the 45Q carbon capture tax credit – and in specifically calling for the addition of a direct pay option – paved the way for this project, which I hope will be the first of several carbon capture, utilization, and storage investments in West Virginia.”
The 45Q federal tax credit was recently expanded to incentivize carbon capture and sequestration for power generation. Earlier this year, the state of West Virginia passed legislation — HB4491 – Requirements for carbon dioxide sequestration — that was signed into state law earlier this year by Governor Jim Justice establishing state rules for carbon sequestration. Together, these two actions make West Virginia an ideal location for this investment.
Lambert made it clear, while the commitment was announced today, the project will take years to complete, explaining that permitting and construction, the project will go into operation later this decade. The effort is expected to generate as many as 3,000 related construction jobs and more than 100 full-time positions.
Senator Manchin said work is needed to speed up that permitting process.
State officials noted that nationwide, large technology and industrial customers have made pledges to lower their environmental footprint, which often includes the sources of energy they rely on for their operations. A low carbon baseload energy source in West Virginia will be an asset to the state’s existing manufacturing and industrial companies, while also attracting future investments.
“This is an outstanding day for West Virginia,” said Governor Jim Justice, “Competitive Power Ventures and the innovation they bring to the energy industry is amazing. We welcome them to West Virginia and will continue to support this excellent company as we compete on the world-stage to recruit the best to our great state. I couldn’t be more proud.”
The construction of the project will utilize well over 1,000 skilled tradespeople from across the region, including prevailing wage labor and apprenticeships, to fulfill the requirements created by the Inflation Reduction Act to utilize the expanded tax credits for carbon sequestration. The natural gas utilized by the facility will support hundreds of additional jobs in West Virginia.
“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.”
Numerous companies across West Virginia have been working with CPV and the project for over a year to advance it to this decision point. The project has already started the extensive regulatory approval process. Once finalized, a firm timeline for commercial operations will be announced.
CPV Group LP, a partnership majority owned by OPC Energy Ltd., is uniquely positioned to leverage global technology and financial partnerships to help modernize America’s power generation. Together with our investors, partners, host communities and other key stakeholders, we are driven to improve our energy infrastructure by developing and operating power generation facilities using cutting edge, clean and highly efficient technologies. Headquartered in Silver Spring, MD, with an office in Braintree, MA, the company has ownership interest in 5,500 MW of clean generation across the United States and the company’s Asset Management division manages 7,335 MW of generating facilities in nine states. Our focus on Environmental, Social and Governance (ESG) and sustained track record of success have enabled us to grow into one of North America’s premier energy companies. For more information: www.cpv.com and follow CPV on Twitter and LinkedIn.