Consumers Energy’s proposed clean coal power plant near Bay City received a major boost on Dec. 29 with the issuance of a state Department of Environmental Quality (DEQ) air permit to advance the $2 billion-plus project.

The 830-megawatt plant is expected to create 1,800 construction jobs, about 2,500 indirect jobs, and then more than 100 permanent jobs after it starts operating in 2017. Overall, the plant is projected to provide a $1.2 billion economic boost to Michigan.

“The issuance of the air permit for our new clean coal plant is good news for Michigan. This permit moves our project a step closer to creating badly needed jobs and boosting the state’s economy,” said John Russell, Consumers Energy’s president and chief operating officer. “It also provides best-in-class protection for the environment with an offset for carbon dioxide emissions from the new plant and a substantial net reduction in overall emissions from our coal-fired generating fleet.”

Last fall, many – especially zealots in the environmental lobby – had assumed the plant was given the kiss of death by the Michigan Public Service Commission, which issued a report saying Consumers Energy had not shown the need for a new plant. That report came after Gov. Jennifer Granholm directed the Michigan DEQ to determine if there were greener alternative energy sources that could be built, instead of new clean-coal-burning plants.

The report determined that given the slow projected growth in the state, new clean-coal plants would not be not necessary, unless Consumers Energy could show how it would remove up to 958 megawatts of production by taking its old plants offline to offset the new power production. That’s just what Consumers did: the air permit for the new clean coal plant includes a commitment from Consumers Energy to retire up to seven of its older, less efficient coal units after the new unit begins operating at the company’s Karn/Weadock Generating Complex near Bay City.

Five of these older units will be retired following operation of the new unit, with retirement of the additional two older units dependent on customer need.

With the retirement of the old plants and when the new production is online, by 2018 emissions from Consumers Energy plants are expected to be reduced by as much as 91 percent for sulfur dioxide; 83 percent for nitrogen oxides, and 81 percent for mercury.

“The new coal plant will use state-of-the-art technology and be one of the cleanest coal power plants in the world,” Russell said. The next major step for the Consumers project is filing a certificate of necessity application with the Michigan Public Service Commission. The company expects to file that application in 2010, with substantial construction to start in 2012.

The Michigan Building and Construction Trades Council, its affiliated unions and membership have been strenuously lobbying the governor’s office and state legislators, urging them to do what’s right for the economic health of the state, and issue air quality permits for the plant. An October rally brought 2,500 to 3,000 construction workers to the steps of the state Capitol Building, under banners and signs saying “Put us to work!”

“Denying those air quality permits for the new Consumers Energy clean-coal plant was a job-killer, plain and simple,” said Patrick Devlin, secretary-treasurer of the Michigan Building and Construction Trades Council. “We have been experiencing construction unemployment levels in this state that we haven’t seen in our lifetime, and as we’ve pointed out all along, holding up those permits is holding up our own homegrown economic stimulus program here in Michigan. I give Gov. Granholm credit for finally coming to the rescue of Michigan’s construction workers, but there’s more work to be done.”

That work includes getting permits issued for another clean-coal plant proposed for Rogers City, by Wolverine Power Cooperative. Prospects for construction of the $1.2 billion plant were also dashed last fall by the same state Public Service Commission report, which stated: “Wolverine failed to demonstrate the need for the proposed facility to meet its projected capacity.” In other words, the PSC felt that the 600-megawatt plant was unnecessary, given slow anticipated growth in Michigan.

The Karn-Weadock and Wolverine plants have been the closest to starting work, but long-term, there is a total of $4.8 billion in coal-plant construction in Michigan that has been proposed and are in various stages of the permit process.

“We’re also going to keep fighting for permit approval for this plant, and the other plants proposed in our state,” said Michigan Building and Construction Trades Council President Patrick “Shorty” Gleason. “The building trades are not anti-environment – but we are pro-jobs. These are companies that are right here, right now, willing to invest in Michigan jobs, and until now, the state has basically been telling them, ‘no thanks.’ I can’t understand that thinking, especially in this economy. I want to extend our thanks to everyone who contacted their legislators, and the legislators themselves for promoting good construction jobs in Michigan.”

Other proposed plants…

In addition to the $2 billion Consumers Energy unit in Bay City and the $1.2 billion Wolverine Power Cooperative facility near Rogers City, there are several other power plants in Michigan that are being proposed. All told, some $4.8 billion in new power production is being proposed in Michigan.

Following is where they’re at in the permitting process:

In Marquette, Northern Michigan University is proposing to construct a $55 million high-pressure boiler at their existing Ripley Heating plant. The plant would be capable of producing the required university’s thermal and electrical needs. At first they proposed to burn a mix of fuels, including wood chips, coal and natural gas.       They have since moved to a wood-only plant, which would burn waste wood as fuel from logging operations. Their application is before the state Department of Environmental Quality.

In Midland, we previously reported that the L.S. Power group had proposed a 750-megawatt, $2 billion coal-fired plant. In May, the owner decided to shelve plans for the plant, citing the poor economy and an excessive regulatory environment.

The Lansing Board of Water and Light is looking to replace its aging Erickson Station powerhouse with a $750 million to $1 billion, 350-megawatt plant that would burn coal and biomass fuels like waste wood and waste crops or grasses.

In Holland, the James De Young Generation Station Expansion is being proposed by the Board of Public Works. They’re seeking to expand the existing 11-megawatt plant with a 78-megawatt coal-fired boiler. Cost: about $250 million.