Plan for second power plant in Woodbridge scrapped. Here's why
WOODBRIDGE – Competitive Power Ventures’ plans for a second power plant in the Keasbey section of town have been scrapped due to current unfavorable market conditions for construction, according to the firm.
Matthew Litchfield, CPV director of external and regulatory affairs, confirmed the interconnection agreement between CPV Keasbey and PJM Interconnection reached a critical juncture on Sept. 30 whereby the project either had to enter construction or be withdrawn from the agreement.
"As CPV Keasbey is a proposed merchant project, it is wholly supported by market revenues. PJM market conditions do not currently support construction of the project at this time, and, as a result, CPV had to withdraw from the interconnection agreement," Litchfield said in an email.
"We are grateful to all those in Woodbridge and the surrounding communities that have supported the CPV Keasbey project over the years and share our vision for increasing the region's energy sustainability through safe, reliable, and environmentally responsible power generation," Litchfield said. "We look forward to evaluating future opportunities at the site and remaining an active member of the Woodbridge community as we continue to operate the existing CPV Woodbridge Energy Center as one of the cleanest generating facilities in New Jersey and the region."
CPV, owner of the Woodbridge Energy Center, a 725-megawatt natural gas electric generating plant in Woodbridge which generates enough electricity to power about 700,000 homes, was looking to build the Keasbey Energy Center, a 657-megawatt, combined-cycle, natural gas, electric-generating facility on a brownfield, a former chemical plant site along the Raritan River.
Woodbridge officials committed to two plants knowing it was cleaning up the worst site in town, according to Mayor John E. McCormac.
"Regardless of CPV's decision we achieved our goal of getting the entire site cleaned up and bringing a tremendous recreational waterfront park to town, and we will still get a large infusion of tax revenue regardless of who develops the property. So to us it's still a home run," McCormac said.
The township gets $2.6 million in tax revenue this year under a Payment in Lieu of Taxes (PILOT) plan from the existing CPV plant, and the money is used to improve roads, parks, sewers and schools, according to township officials.
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Revenue from the second plant was expected to be similar, eventually resulting in a savings of about $150 a year per house over 30 years. The savings with the existing plant is about $82 a year per household, township officials said.
While Woodbridge embraced the project, other nearby towns, including Perth Amboy and Edison, have approved resolutions opposing it.
The project also has faced opposition from climate activists who protested the project over concerns pollutants from the plant would worsen air and water quality.
Since the project was announced, there has been a substantial grassroots movement to stop it. Local activists have rallied and marched in town, and 16 elected local and county governing bodies formally opposed the plant, according to Food and Water Watch.
CPV, which is based in Silver Spring, Maryland, had said its proposed second plant "will be one of the most efficient and lowest emitting generation facilities of its kind" as it provides enough electricity to power 600,000 homes and businesses. The company also had said its new plant would allow the closure of older, less efficient and more polluting facilities.
According to CPV’s air permit application, the new plant would emit hundreds of tons of toxic air pollutants every single year – including sulfur dioxide, volatile organic compounds, and lead, according to Food and Water Watch, adding the neighborhoods close to the facility are already suffering from poor air quality.
“The CPV power plant scheme would have dumped air pollution into already overburdened communities, and undermined the Murphy administration’s climate goals,” said Food & Water Watch Central Jersey Organizer Charlie Kratovil. “The inspiring grassroots movement to stop this plant won a major victory for clean air, environmental justice, and our climate. With plans for two more dirty gas plants still on the table here in New Jersey, we need Governor Murphy to back up his rhetoric with decisive action to stop all fossil fuel expansion projects.”
On top of greenhouse gas emissions, the plant would have emitted ozone causing agents and many toxic air pollutants all within six miles of more than 70 public schools, according to the New Jersey Sierra Club.
“This is a great victory for the residents of Keasbey, as well as all adults and children in adjoining communities who would have suffered if this unnecessary power plant was built,” said Gary Frederick, conservation chair of NJ Sierra Club Raritan Valley Group. “Once again, this proves the power of community protests and opposition can have a positive impact for cleaner air, less burning of harmful fossil fuels and common-sense environmental justice outcomes.”
Email: srussell@gannettnj.com
Suzanne Russell is a breaking news reporter for MyCentralJersey.com covering crime, courts and other mayhem. To get unlimited access, please subscribe or activate your digital account today.
This article originally appeared on MyCentralJersey.com: Woodbridge NJ power plant plan dropped
