Indeck Niles Energy Center

The Indeck Niles Energy Center is a proposed 1GW natural gas-fired combined-cycle power plant (CCPP) in Michigan, US.

Estimated to cost $1.05bn, the project is co-owned by Korea Southern Power (50%), Daelim Energy (30%), and Indeck Energy Services (20%). In addition, Indeck Energy Services will act as the project developer.

The Michigan government approved the development of the Indeck Niles Energy Ceneter in May 2017. Construction of the CCPP will be started by August 2019, with the first power expected to be achieved in March 2022.

The power plant is estimated to generate electricity sufficient to supply for approximately 635,000 Michigan households. It is estimated to create approximately 500 construction and 21 operational jobs.

The state-of-the-art Indeck Niles Energy Center is expected to generate 50%-90% lesser carbon emissions as compared to the conventional coal-fired plants.

Indeck Niles Energy Center location and make-up

The Indeck Niles Energy Center will be located on a 110-acre site at Niles City Industrial Park in the Cass County, Michigan.

It will feature two GE 7HA.02 gas turbines of 384MW capacity each. The gas turbines will be complemented by a steam turbine and two heat recovery steam generators (HRSGs).

Each 7HA.02 gas turbine will have a net heat rate of 5,834kJ/kWh and a ramp rate of 50MW/min. With less than 30 minutes of start-up time, the turbines offer a combined-cycle efficiency of more than 63%.

The turbine features a simplified dual-fuel system, which helps in minimizing water usage, eliminates recirculation, and provides enhanced liquid purge for improved reliability and dependability. It also features an air-cooled generator for simplified installation and maintainability.

The gas turbines will produce energy, while the excess heat generated will be recovered and converted into steam to produce additional electricity.

Auxiliary equipment to be installed at the power plant will include dry low-NOx burners integrated with selective catalytic reduction technology for controlling the NOx emissions.

Transmission details for Indeck Niles Energy Center

Indeck Niles entered an interconnection construction service agreement, in June 2017, with PJM Interconnection and AEP Indiana Michigan Transmission (AEP) to transmit the energy from Indeck Niles.

AEP proposes to construct a new 345kV switching station to the west of the existing 345/138kV Kenzie Creek substation in Cass County. It will create an interconnection between the Cook-Kenzie Creek and Cook-East Elkhart circuit sections.

Comprising six 345kV circuit breakers, the new switching station will be initially arranged in a ring-bus mode. It is proposed to be converted into a breaker and half bus arrangement in future.

The station will also comprise primary and back-up 345kV metering system, supervisory control and data acquisition (SCADA) system, line protection and controls, and other associated equipment.

Indeck Niles Energy Center financing

Financial closure for the Indeck Niles energy center was achieved in April 2019. BNP Paribas, Crédit Agricole, NH Bank, and Nomura provided $435m floating-rate term loan of the total $635m debt package.

The debt package also includes a $150m fixed-rate loan, purchased by Hana Financial and NH Securities with 6.75% coupon rate, and a $50m letter of credit facility.

Contractors involved

Kiewit Power Constructors was awarded the engineering, procurement, and construction (EPC) contract for the Indeck Niles Energy Center.

Kiewit sub-contracted GE for the supply of gas turbines, a steam turbine-generator unit, and HRSGs for the CCPP, in May 2019. GE will also provide services for the turbines and generators under a multi-year agreement.

PIC Group, a subsidiary of Marubeni Group, will provide the operations and maintenance services for the Indeck Niles Energy Center, while Tenaska will undertake the fuel supply and energy management.