A Michigan power plant that receives 1.75 million to 2 million tons of coal a year from Superior's Midwest Energy Resources could close in 2017 or be refitted to be fueled by natural gas.
The Mining Journal of Marquette reports the Presque Isle Power Plant in Marquette could be retired as a Wisconsin-based utility looks to comply with proposed federal pollution regulations.
We Energies spokesman Brian Manthey told the Mining Journal on Tuesday that no final decision has been made, but the Milwaukee-based utility needs to look at alternatives, which take years to develop.
Midwest Energy Resources President Fred Shusterich said the news neither surprises nor upsets him.
"This is just reality," he said. "You are looking at myriad of options as you go forward to comply with new federal regulations. That could be switching from eastern to western coal, from solid fossil fuels to natural gas, retiring plants. It all becomes an economic analysis on costs. This
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doesn't upset me at all."
Midwest Energy's Superior terminal has an annual capacity of 25 million tons. Shusterich expects to ship about 14 million to 15 million tons of coal this year, in large part because Ontario Power Generation reduced its orders from 8 million tons to about 300,000 tons this year.
OPG is working to phase out the use of coal to produce electricity by the end of 2014, investing in electric and nuclear generation and testing the use of biomass fuels in plants that formerly were fueled with coal.
Midwest Energy is responding to changes in the North American market by entering new markets.
"We are exporting 350,000 metric tons to Spain and Rotterdam (in the Netherlands) this year," Shusterich said. "And we just signed a deal for three years for close to 2 million tons a year to Rotterdam."
"In fact, I am going to Spain on Friday to meet with a bunch of potential buyers at a world coal conference," he said. "That's where we see the growth market in the next five years - off shore."
