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Thanks! It looks like the driving factors are that it's a combined plant, and gas is too expensive on site. We did examine both the operating and fuel costs of
by e1ven 8y ago
Thanks! It looks like the driving factors are that it's a combined plant, and gas is too expensive on site.
We did examine both the operating and fuel costs of a gas option. It costs less to build a gas plant; however, gas is a more expensive fuel than coal. All our models are just that -- models -- because there is currently not a reliable source of gas. Using today's prices, our fuel costs with the new boiler would be about $5.3 million each year. Fuel costs at current gas prices would be about $20 million a year. Until a low-cost, reliable supply of gas becomes a reality in Fairbanks, a gas option is not viable.