Competitive Power Ventures Inc. decided not to move forward with its planned 657-MW Keasbey Energy Center in New Jersey, a company spokesperson confirmed.
The Silver Spring, Md.-headquartered private developer withdrew from an interconnection agreement with the PJM Interconnection LLC after the project "reached a critical juncture" Sept. 30 where it had to either begin construction or withdraw from the agreement, Competitive Power Ventures (CPV) spokesperson Matthew Litchfield said in an email Oct. 12.
"In light of current PJM market conditions that do not support construction of the project at this time, CPV had to withdraw from the agreement," Litchfield said.
In August 2018, CPV acknowledged plans to develop the Keasbey Energy Center adjacent to the Woodbridge Energy Center in Middlesex County, NJ. Woodbridge is a 776-MW combined-cycle plant that began operations in 2016.
Environmental group Food & Water Watch applauded the decision to cancel the project.
"The inspiring grassroots movement to stop this plant won a major victory for clean air, environmental justice, and our climate," Charlie Kratovil, the organizer for Food & Water Watch Central Jersey, said in a news release.
Food & Water Watch pointed out that CPV's air permit application for the Keasbey Energy Center showed it would "emit hundreds of tons of toxic air pollutants every single year — including sulfur dioxide, volatile organic compounds, and lead."
Litchfield said the decision should not be seen as a read-through to CPV's other generation projects and is "solely limited to the CPV Keasbey project as PJM market conditions are highly localized and each project has its own unique set of circumstances."
CPV, an independent power producer owned by Israel-headquartered OPC Energy Ltd., in September 2022 announced plans to build an 1,800-MW combined-cycle gas plant with carbon capture and storage in West Virginia. The planned project represents a multibillion-dollar investment, with CPV attributing its development to the Inflation Reduction Act of 2022 and the expanded 45Q federal tax credit for carbon capture.
The Inflation Reduction Act increased tax credits for carbon sequestration from $50/metric ton of CO2 captured and stored to $85/metric ton for industrial and power sectors and $180/metric ton for direct air capture projects.
In December 2022, CPV selected Doddridge County, W.Va., as the site of the $3 billion CPV Shay Energy Center. The plant will be in PJM's 13-state planning area.
For the third consecutive year, the clearing price for capacity the majority of PJM's footprint fell in results announced Feb. 27, settling at $28.92/MW-day for the 2024/2025 delivery year.
The Institute for Energy Economics and Financial Analysis warned in an August report that the "golden era" for gas plant developers in PJM is likely over.
In a follow-on report released Oct. 11, the institute said these risks extend to pension funds and other institutional investors.
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