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Decommissioning

 

Decommissioning of Fossil Fuel Plants Is a Complex and Often Costly Process

One of the most important decisions associated with decommissioning a power plant is the end use of the site. The decommissioning process occurs at the end of plant life, after operations cease, and may overlap with remediation and redevelopment. It is a process that not only requires cleanup and/or waste removal and remediation, but also the consideration of redevelopment efforts and future use of the site. Plant decommissioning has limited regulations and guidelines at the national level, which opens the door for a variety of different outcomes that can have a direct impact on communities, shareholders, and utility companies. However, there are several state regulations, particularly as it relates to environmental remediation.

Once the decision has been made to retire a generating fossil fuel plant, there are several feasible options, including mothballing the facility, repurposing for alternative energy production, or redevelopment of the site / facility for a different use.

Learn More About Reuse Options

Where Decommissioning Fits in the Site Reuse Timeline

A general timeline for sit reuse is shown below. In practice, the reuse timeline will vary depending on the site.

Shutdown

Plant announces closure and power production stops.

Decommissioning

Equipment and materials are removed and buildings are demolished.

Remediation

Contamination is addressed to support new uses on site.

Redevelopment

Site is prepped for new uses, which can range from clean energy to mixed-use to institutional to a number of other uses.

What Happens to a Facility During Decommissioning?

Decommissioning a facility involves several steps to ensure an equitable process that prepares it for future reuse. 

Develop a Strategy

Once a plant is identified to be decommissioned, a strategy for the future use of the site should be developed that includes a variety of stakeholders, including but not limited to property owners, municipal leaders, and community members. A management plan for the decommissioning process should be identified and a conversation around future use should begin.

Shut It Down

Once operations cease, operating permits will be terminated. At this point, electrical generating units are shut down, equipment is removed, and hazardous materials associated with both the generation process and any building/ structure or asset should be documented and assessed. A site assessment closure work plan may be required for permit closure. Environmental assessments should be considered at this point to prepare for remediation.

Key Takeaways

Decommissioning requires planning —it’s an extensive and thorough process. Knowing the end goal will help figure out the exact steps needed to efficiently decommission the facility and prepare the site and the community for future uses.

Begin Remediation

Remediation involves the investigation and cleanup of hazardous materials to meet federal and / or state requirements. Start with collecting water and soil samples and develop a cleanup plan from there. Be sure to keep redevelopment in mind, as different uses may require different levels of remediation.

Learn More About Environmental Remediation 

Other Considerations

Decommissioning Decision Tree  

 

Decommissioning Decision Tree Decommissioning Decision Tree

 

What is the Cost of Decommissioning?

Full decommissioning includes expenses related to both decommissioning and redevelopment. The initial decommissioning costs include hazardous material and asbestos abatement, structural demolition and scrap recovery, remediation, restoration of the site to a safe condition, project management, and public engagement.

The next steps in the decommissioning process vary based on the vision for the future of the facility. Depending on the intended future use of the site, costs may include but are not limited to additional environmental remediation, site planning, acquisition, and new constitution for any future use.

Assessing Options for Decommissioning

The cost of decommissioning and reusing a power plant site will vary depending on site conditions, the value of site assets, and end use options. The following areas should be analyzed to give plant owners and the community an idea of what costs could look like. 

  1. Above-Ground Costs: Costs associated with managing regulated materials above ground, like asbestos, PCBs, and mercury.
  2. Below-Ground Costs: Costs associated with managing surface and below-ground environmental issues, like coal piles and petroleum releases.
  3. Demolition and Land Reclamation Costs
  4. Salvage Value of Plant Equipment and Scrap
  5. Property Value of Site

What Comes Next?

So, your facility will be decommissioned in the near future. What can you do to prepare? What needs to be done?

The decommissioning process will look different in each community. The process depends not only on the type of facility, but any future redevelopment and uses of the property, and environmental remediation. Take it one step at a time.

Keep the following decommissioning steps in mind. 

Future Use Options

Start thinking about the future of the site. The extent of decommissioning and remediation is determined by the planned reuse of the site. What does the community need? What does the community want to see? What is feasible for the community? What is feasible for the site?

Prepare for Remediation

Once the plant is decommissioned, the site and facility will likely have to undergo assessment and environmental remediation, depending on proposed future use. Remediation will ensure the site is primed for redevelopment. 

Learn More About Regulations

Pursue Funding

Find funding and programs to help with the cost of the various aspects of decommissioning, such as remediation funding. 

Explore Funding Resources

Engage the Community

Work with stakeholders and members of the community to create a vision and goals for the future of the site. It’s important to recognize that community engagement and feedback should be balanced with site ownership, regulatory measures impacting the site and financial feasibility of reuse options.

 

Decommissioning in Action

NRG Power Plant

In 2015, NRG Energy, Inc. ceased operations of the NRG Power Plant located along the shores of Lake Erie in the City of Dunkirk, NY, with plans to convert the plant from coal-powered to natural gas. By 2016, plans to convert the plant were abandoned due to cost, and the facility was mothballed. The decommissioning process began in 2020 and a feasibility study and alternatives analysis were created for the City of Dunkirk and Chautauqua County.

The feasibility study played an important role in the decommissioning process. The study took an in-depth look at the existing conditions of the site, regional market conditions, socio-economic characteristics, remediation, and potential reuse options, and implementation strategy. 

Site Assessment: The site assessment looked at the existing conditions of the land and structures on the plant site, as well as existing land use and zoning. The site analysis highlighted opportunities for consideration of future use of the site, such as CSX access, and constraints, such as the presence of coal ash lagoons on site.

Site Reuse Alternatives: The study explored seven re-use alternatives as options that could be viable for future use of the site. Alternatives were identified based on an understanding of the City and County goals to create an active waterfront, expand job opportunities, generate tax revenue, and incorporate environmental sustainability goals. Re-use alternatives include re-powering the plant, industrial development, data center(s), battery storage, micro grid development, and creating a clean slate by demolishing all structures and implementing intensive environmental remediation. Data center development and industrial use were identified as the preferred re-use concepts.

Implementation Strategy: An implementation strategy was developed as a part of the study to give the City of Dunkirk and Chautauqua County viable next steps to address any information gaps and to move the redevelopment process forward. Next steps include:

Since completing the decommissioning feasibility study, the Dunkirk NRG Power Plant is now an active Just Transition Site Reuse project. 

Additional Decommissioning Resources