The Indeck Niles Energy Center is a 1.08GW gas-fired combined-cycle power plant located in Niles, Michigan, US.
Indeck Energy Services, an independent power producer based in the US, is the developer of the power plant and holds a 20% interest. Korea Southern Power (Kospo) owns 50% of the project, and Daelim Energy holds the remaining 30%.
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The project received an air emissions permit from the Michigan Department of Environmental Quality’s Air Quality division in May 2017. Construction of the power plant started in August 2019.
The project involved an estimated investment of $1.05bn and was commissioned in June 2022. It can generate enough electricity to meet the needs of 635,000 homes and businesses.
The electricity generated is sold to North America’s largest electricity market, which covers Philadelphia, New Jersey and Maryland (PJM).
Location
Developed on a former railyard site, the combined-cycle power plant is located within the Niles Industrial Park in Niles city, which is found close to the Michigan border and north of South Bend, Indiana.
The location provides access to existing transmission lines and distribution networks across the Midwest area.
Plant make-up
The plant is installed with two GE 7HA.02 gas turbines with a power generating capacity of 384MW each.
It is also installed with a steam turbine generator, two heat recovery steam generators (HRSG) and an auxiliary boiler equipped with low nitrogen burners.
The natural gas-fired combined-cycle power plant produces electricity through gas turbines and uses steam produced through waste or excess heat to generate additional electricity. It is expected to generate between 50% and 90% fewer carbon emissions than a coal power plant.
Indeck Niles power plant transmission
Indeck Niles signed an interconnection construction service agreement in June 2017 with PJM Interconnection and AEP Indiana Michigan Transmission (AEP) to offtake the electricity produced from the power plant.
A new in-line 345kV switching station was proposed to be constructed near the existing Kenzie Creek 345/138kV substation in Cass County, Michigan. It was proposed to connect the Cook-Kenzie Creek circuit and Cook-East Elkhart circuit.
The agreement also included a 345kV connection between the collector station and switching station, as well as fibre optic cables and communication lines.
Financing
In 2019, Kospo signed an agreement to provide financing for the plant’s construction and operation. Kospo and Daelim Energy joined the project as equity investors.
The project reached financial closure in April 2019.
BNP Paribas, NH Bank, Crédit Agricole and Nomura Securities provided a $435m floating-rate term loan as part of the project’s financing. NH Investment & Securities and Hana Financial Investment purchased fixed-rate notes worth $150m.
Whitehall & Co, an investment bank based in the US, advised Indeck on the project financing.
Crédit Agricole was engaged to provide financial advisory services to Kospo on its acquisition of a 50% stake in the project.
The global law firm Morgan Lewis acted as legal adviser for Indeck. Norton Rose Fulbright was appointed to provide legal advice for the lenders, while Kospo and Daelim engaged Latham & Watkins as legal adviser.
Contractors involved
US-based construction company Kiewit received a contract to provide engineering, procurement and construction services for the project.
General Electric (GE) was subcontracted by Kiewit for the supply of two 7HA.02 gas turbines, a steam turbine and generator, and two HRSG for the project in 2019. The contract also included a multi-year services agreement for the maintenance of the power generation equipment.
The energy services company PIC Group was awarded a contract to handle the operations and maintenance of the project in January 2020.
Kiewit subcontracted Victaulic Company for the piping solution, including pipe spools, couplings, fittings and valves. The piping solutions were installed across the potable water system, service water system, instrument air systems and fire water system.
Air Hygiene International was appointed to conduct an emissions test to measure nitrogen oxide (NOx) and sulphur dioxide (SO₂) levels in the exhaust from the D-Type auxiliary boiler of the power plant. The test was completed in 2021.
Terracon provided construction materials testing and geotechnical services for the project. The company used its map-centric, visual and interactive interface, known as TARGETID, for the project. The TARGETID solution is used to collect, communicate and report materials and site data in real-time.
NTH Consultants assisted Indeck Niles in obtaining the air permit for the project. The company prepared air emission estimates and performed a detailed review of air quality regulations along with an air pollution control technology evaluation and ambient impact analysis.
