After ten years, GVEA has worked out a settlement for HCCP. GVEA has agreed to purchase the plant from its owner, the Alaska Industrial Development and Export Authority, for $50 million. AIDEA has agreed to loan GVEA up to an additional $45 million for plant startup and system integration costs. We completed a partial closing in December of 2009. GVEA expects to take possession of the plant in 2010 following approval from the Rural Utility Service and the Regulatory Commission of Alaska.
This is great news for Interior consumers as the purchase of HCCP will:
Golden Valley appreciates the efforts of the AIDEA board to resolve this conflict.
Golden Valley intends to run the plant with the existing "Clean Coal Technology" under existing environmental permits. The goal of the 1990's Clean Coal Technology program was to find a way to burn this vast resource more cleanly and help achieve nation energy independence. GVEA is approaching this goal as the permitted emission levels for both power plants is lower than the original permit for just the existing Healy Power Plant alone.
GVEA has a proven track record of owning and operating a coal plant. Getting HCCP up and running strengthens the local economy by using local coal resources.
When operational, the plant will provide 50 megawatts of competitively-priced power to the Railbelt. HCCP will provide jobs, help strengthen GVEA’s fuel diversity, which helps stabilize the cost of power, and help provide for the future power generation needs of Interior Alaskans.
AIDEA constructed and owns HCCP. The project was partially funded by the U.S. Department of Energy’s (DOE) Clean Coal Technology Program in their efforts to research and develop clean burning coal technology. Usibelli Coal Mine partnered in the project as the coal supplier.
GVEA originally participated as the future operator and power purchaser, but in January 2009 agreed to purchase the plant from AIDEA in addition to operating the plant.
In 1989, the U.S. DOE’s Clean Coal Technology Program selected Healy as a demonstration plant to use experimental technology to burn waste coal. HCCP began burning coal in 1998 and generated power intermittently through 1999 in its testing phase. The plant was shut down in 2000. Talks between AIDEA and GVEA to resolve disputes were unsuccessful. In 2005, AIDEA filed a lawsuit against GVEA. Subsequent mediation did not result in resolution, but the entities agreed to terms for a sale, which when complete, will end litigation.
| Department Of Energy | $120 million |
| Alaska Legislature | $25 million |
| AIDEA | $150 million |
| GVEA & Usibelli Coal Mine | $10 million plus in-kind contributions |
| Purchase price | $50 million, funded by AIDEA |
| Line of credit | $45 million, funded by AIDEA |
| 1989 | DOE selected HCCP as a Clean Coal Technology Program demonstration plant |
| 1995-1997 | HCCP constructed |
| 2000 | Plant shut down |
| Feb. 2009 | GVEA and AIDEA reach sale agreement |
| 2009 | Purchase negotiations |
| 2010 | Complete purchase agreement and begin preliminary engineering |
| 2011 | Anticipated plant start up |
