Angela Webber//October 25, 2011//
The Port of Portland is feeling fortunate: A proposed development of two natural gas plants may be ideal for a 38.4-acre lot the port owns at the Troutdale Reynolds Industrial Park.
The deal is far from solid, but the Troutdale Energy Center would represent an investment of $800 million to $850 million. The proposal also is a good fit for the site, which has existing infrastructure and wetlands that limit a building’s potential footprint.
, a New York-based owner and developer of gas-fired energy generation facilities, announced its plans for the site late last week. The natural gas plants would fill a need identified by in an Integrated Resource Plan approved recently by the Public Utility Commission of Oregon. PGE is expected to issue a request for proposals for a developer to build the two plants early next year.
The utility expects to need both a base-load facility to run regularly and a flexible-resource facility to run only when needed, PGE spokesman Steve Corson said. The latter one would provide energy when irregular resources, like wind or hydropower, fail to meet demand.
PGE is planning to submit its own proposals to the RFP, which will be reviewed both by the utility and an independent evaluator assigned by the utility commission.
Development Partners Director Bob Howard believes his company’s proposal will be more cost-effective and efficient than the one planned by PGE. The lot, called lot 3, includes existing electric and gas infrastructure left from the site’s former use as a Reynolds aluminum plant. Other nearby resources will add to efficiency, Howard said; a wastewater treatment plant, for example, can be used for cooling.
Also, transmission resources for the Bonneville Power Administration, PacifiCorp and PGE exist nearby.
鈥淭here’s not a lot of generation in that area, but there’s a significant amount of transmission there,鈥 Howard said.
The existence of a large natural gas pipeline nearby also will lower costs, Howard said.
For the Port of Portland, the fit could barely be better.
鈥淭he nearby assets might be viewed as a negative by some, but it’s an asset for this center,鈥 port spokesman Josh Thomas said. 鈥淔rom the port’s perspective, (the center) fits exceptionally well within the existing site constraints.鈥
One of those constraints is the location of protected wetlands, which will limit construction to only about a third of the 38.4-acre lot. That won’t be a problem for the Troutdale Energy Center, Howard said.
Development Partners is working with on the project, and Howard expects that firm to serve as the general contractor. He said that according to the firm’s 鈥渂ack-of-the-envelope鈥 calculations, the project would create 500 construction jobs and approximately 30 permanent jobs at the facility.
If the procurement process works out as Development Partners hopes it will, construction would start in 2013 and both plants would be up and running in 2015.
Troutdale Mayor Jim Kight said that the proposed deal is 鈥渂ittersweet.鈥 The potential for full-time jobs is a major benefit, he said. But under the state Strategic Investment Program, the plants would be exempt from property taxes for 15 years, which would mean less revenue for Troutdale in the short term. The environmental impact also raises questions, Kight said.
鈥淐ity Council will be looking at the project and the balance between the economic piece and livability of the community,鈥 he said.