FRAUD AND MISMANAGEMENT AT CCS PILOT PROJECT IN MISSISSIPI FURTHER UNDERMINE CCS HYPE

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5 july 2016

[4C Note: for readers who have followed the numerous exposés of the fraudulent claims of "Clean Coal" based on carbon capture and storage, this article will be no surprise. Greenpeace and McKinsey Consultancy research revealed years ago that its cost was too high to compete with renewables, that the price per ton of carbon on the ETS market would only make CCS profitable if it were many times higher than it now is, that a commercially efficient CCS could only be available around 2030, that the storage aspect was full of dangerous, uninsurable uncertainties, and that one would require an extra coal plant for every three operated with CCS. See also our 2015 postings at http://www.stopwarming.eu/?news&id=1886] and http://www.stopwarming.eu/?news&id=1583. Considering the importance of this New York Times exposé, we urge readers to read it in its entirety, which is about tne times longer than the excerpts posted below.]

Piles of Dirty Secrets Behind a Model ‘Clean Coal’ Project

A Mississippi project, a centerpiece of President Obama’s climate plan, has been plagued by problems that managers tried to conceal, and by cost overruns and questions of who will pay.


By IAN URBINA, New York Times, JULY 5, 2016

DE KALB, Miss. — The fortress of steel and concrete towering above the pine forest here is a first-of-its-kind power plant that was supposed to prove that “clean coal” was not an oxymoron — that it was possible to produce electricity from coal in a way that emits far less pollution, and to turn a profit while doing so.

The plant was not only a central piece of the Obama administration’s climate plan, it was also supposed to be a model for future power plants to help slow the dangerous effects of global warming. The project was hailed as a way to bring thousands of jobs to Mississippi, the nation’s poorest state, and to extend a lifeline to the dying coal industry.

The sense of hope is fading fast, however. The Kemper coal plant is more than two years behind schedule and more than $4 billion over its initial budget, $2.4 billion, and it is still not operational.

The plant and its owner, Southern Company, are the focus of a Securities and Exchange Commission investigation, and ratepayers, alleging fraud, are suing the company. Members of Congress have described the project as more boondoggle than boon. The mismanagement is particularly egregious, they say, given the urgent need to rein in the largest source of dangerous emissions around the world: coal plants.

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Many problems plaguing the project were broadly known and had been occurring for years. But a review by The New York Times of thousands of pages of public records, previously undisclosed internal documents and emails, and 200 hours of secretly though legally recorded conversations among more than a dozen colleagues at the plant offers a detailed look at what went wrong and why.

Those documents and recordings, provided to The Times by a whistle-blower, an engineer named Brett Wingo, and interviews with more than 30 current or former regulators, contractors, consultants or engineers who worked on the project, show that the plant’s owners drastically understated the project’s cost and timetable, and repeatedly tried to conceal problems as they emerged.

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What troubled the engineers most was the poor quality of work: leaking gaskets, cracked ductwork, and pipes missing inspection records, valves and supports. Ryan Brown, a plant engineer, said during a phone call that he was having to “go back and do some sort of repair or rebuild” for every piece of work handed to him by the plant’s construction teams, which were under intense deadline pressure.

In a call on Aug. 22, 2014, Mr. Wingo confronted one of his superiors, Brett Wingard, about photographs covertly taken by an inspector who was concerned about defective pipes at the plant. Mr. Wingard dismissed the threat, saying that the pipes were only in a section of the plant not yet in operation (part of the project is running on natural gas already). GPS information in the images indicates otherwise.

Other workers recounted in phone calls to Mr. Wingo that they had discovered a large section of outdoor exhaust pipe that was glowing cherry red one night in September 2014 because 1,400-degree gases were misdirected through it. “That’s so bad that it made people all over the company stand up and say this is ridiculous,” Mr. Lunsford said in an October call with Mr. Wingo.

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