Division of Energy Director Says W.Va. Embraces Energy Supplier Role

Tuesday, June 14, 2011

West Virginia is second only to Pennsylvania in contributing the most electricity to America’s energy grid.

By Mike Ruben
WTRF

CHARLESTON – West Virginia is a natural when it comes to being one of the country’s key energy providers.

The Mountain State possesses substantial reserves of coal and natural gas, but the hurdles continue to be raised in the trek between the ground and the consumer, according to Division of Energy Director Jeff Herholdt Jr.

“The biggest challenge being placed on us is how clean our energy needs to be,” said Herholdt, who has directed the division since its inception in 2007. “We seem to have (federal government) buy-in on solar and wind, but we need more than solar and wind to meet our nation’s energy needs.

“It’s easy to object to things like power plants and power lines,” he said. “It’s harder to say that our long-term needs require that we take these ambitious steps to accomplish this.”

With the exception of Pennsylvania, West Virginia contributes more electricity to America’s energy grid than any other state, Herholdt said. Only 25 percent of the coal mined here is destined for the state’s power plants. The majority is exported to other states and beyond.

“West Virginia has accepted its role of being an energy supplier,” he said. “We appreciate the long-term needs of having affordable, abundant energy to make our nation run. Not all states have bought into that.”

California is the most energy-dependent state with Virginia being second in that category, according to Herholdt.

The division’s goal is to demonstrate that West Virginia can be free of energy imports on a BTU basis by 2030.

“Our dependence on imported oil is because of our transportation sector’s dependence on liquid petroleum products to the state and to the nation,” said Herholdt. “The core thing we are shooting for here in the plan is coal-to-liquids plants. What we’ve talked about is 10 plants.”

A ceremonial groundbreaking for the $4 billion TransGas Development Systems facility took place earlier this spring in the Mingo County community of Wharncliffe. Herholdt said the plant will be capable of converting 3 million tons of coal per year to 6.5 million barrels of fuel. State officials have projected that 10 plants could have a 1.3 billion barrel capacity by 2030.

“Five or six of these projects were being pursued, but this project has stuck,” he said. “There’s local excitement for coal-to-liquids in West Virginia. We have a developer who is very interested in making this happen.”

Herholdt referenced two other significant coal-based projects.

American Electric Power is testing carbon sequestration technology at its Mountaineer Power Plant in Mason County. A small percentage of the plant’s carbon emissions are captured and stored underground.

A larger second phase of the project designed to capture 20 percent of the carbon is funded 50 percent by the U.S. Department of Energy.

The Longview Power near Morgantown is a new generation 700-megawatt coal-to-electricity facility with higher combustion and is environmental control efficient.

“It’s a more efficient way to make electricity from the coal,” Herholdt said. “This is one of the cleanest coal plants in the United States. Clean coal technologies are incredibly vital to West Virginia.”

Built at a cost of $2 billion, the plant represents the largest privately funded project in the state. The facility is owned by Longview Power LLC, which is majority-owned by GenPower Holdings LP.

Herholdt said utility companies have been aggressively retrofitting West Virginia power plants to meet Environmental Protection Agency requirements.

“Our plants are now at 80 percent compliance while nationwide it’s about 40 percent,” he said. “West Virginia is preparing for coal’s future. How do we continue that? How do we ensure that coal will be considered an option as the need arises for new power plants?”

While coal production in West Virginia decreased by 20 percent between 2008 (165.7 million tons) to 2010 (135.6 million tons), natural gas production continues to escalate. Overall in-state production more than doubled between 2000 and 2009. Marcellus shale represented less than 1 percent of the state’s natural gas production in 2005, but increased to about 12 percent within five years, based on Department of Environmental Protection data.

Gains also are being made in wind-produced energy. Herholdt said one 66-megawatt project was in place when the state’s Energy Opportunities Document was introduced in 2007. West Virginia sites now produce 580 megawatts.

To a lesser degree, solar energy is progressing with funding from federal stimulus grants. Projects include the DEP’s office, a school building in Marshall County, the Morgan County Courthouse in Berkeley Springs, town halls in Beech Bottom and Man, and the wastewater treatment plant in Hurricane.

“The economics of solar do not warrant it for everything at this juncture,” he said. “Solar remains the most expensive form of residential application energy.”

A one of the most forested states in the country, Herholdt suggested biomass energy may have a valid future in West Virginia.

“Liquid petroleum from wood has opportunities,” he said.

A 2-acre demonstration project is now underway involving a non-native biodegradable feedstock. The specialty grass will be harvested for use in the production of beverage containers. If the experiment proves successful, Herholdt said the grass could become an ideal application at surface mine sites.

“Energy development is not necessarily routine,” Horholdt said. “We need to ensure that we have viable and competitive energy systems in place so home electric bills and gasoline prices at the pump are affordable.”

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