Entergy Texas Plans New Generation Facility To Power Southeast Texas

Rhea-AI Summary

Entergy Texas has initiated plans to seek approval for the construction of the Orange County Advanced Power Station, a 1,215-megawatt dual fuel facility located near Bridge City, Texas. This plant aims to meet increasing energy demands in Southeast Texas and is projected to provide approximately $1.5 billion in net benefits to customers by reducing reliance on energy markets. The project is expected to generate over 7,000 direct jobs during construction and almost $1.8 billion in economic activity.

The facility will incorporate hydrogen fuel, ensuring zero carbon emissions and promoting long-term sustainability.

Positive

• Projected net benefits of over $1.5 billion for customers by reducing energy market reliance.
• Creation of more than 7,000 direct jobs during construction and nearly $1.8 billion in economic impact.
• Focus on sustainability with hydrogen as a clean fuel source, supporting decarbonization efforts.

Negative

• None.

BEAUMONT, Texas, July 29, 2021 /PRNewswire/ -- As part of its plan to meet growing demand across Southeast Texas and modernize its generation fleet, Entergy Texas, Inc. has begun the process to seek approval to construct the Orange County Advanced Power Station, a 1,215-megawatt, dual fuel combined cycle power facility. The plant will be located near Bridge City, Texas and will be capable of powering more than 230,000 homes and use a combination of natural gas and hydrogen. Hydrogen produces zero carbon emissions as a fuel source for electric generation. 

"The Orange County Advanced Power Station is a Texas project for Texas customers," said Sallie Rainer, president and CEO of Entergy Texas. "The addition of this facility will continue our work to provide reliable, low-cost and clean energy in Southeast Texas and will provide more than $1.5 billion in net benefits to customers by reducing reliance on energy markets."

An outside economic impact analysis by TXP, Inc. found that the construction and operation of the Orange County Advanced Power Station will play a major role in creating jobs and driving increased economic activity. Estimates indicate that construction will provide more than 7,000 direct jobs in Texas and nearly $1.8 billion in economic activity for the regional economy. Once operational, the plant will provide approximately 27 permanent direct jobs in Texas.

In addition to meeting current customer needs across Southeast Texas, the Orange County Advanced Power Station will be built with a focus on long-term sustainability in an economy where many stakeholders and customers are focused increasingly on decarbonization. The plant's ability to be powered by hydrogen, which emits no carbon dioxide, supports its long-term viability for customers and the Southeast Texas community. Hydrogen is widely used today in industrial processes, including by a number of Entergy Texas's large industrial customers. The fuel can be stored nearby in facilities such as in Entergy Texas's Spindletop storage facility and can be deployed alongside natural gas to produce lower emissions energy reliably when needed, including working in hours when intermittent renewable resources do not generate power. 

"Southeast Texas is well-positioned to play a key role in the transition to increased use of hydrogen in electric generation," said Rainer. "Our region is home to hydrogen producers, pipelines, storage and industrial users. We look forward to working with industry partners on the role the Orange County Advanced Power Station will play in providing reliable power while also meeting the sustainability needs of our customers and communities, and also to establish Southeast Texas as a global hub for hydrogen production and consumption."

Within the coming months, Entergy Texas intends to file a request for approval to construct the Orange County Advanced Power Station with the Public Utility Commission of Texas. If the Public Utility Commission approves Entergy Texas's application, construction will begin in the second quarter of 2023. Entergy Texas expects the plant to be in service by summer 2026.

About Entergy Texas  
Entergy Texas, Inc. provides electricity to approximately 473,000 customers in 27 counties. Entergy Texas is a subsidiary of Entergy Corporation, an integrated energy company engaged in electric power production, transmission and retail distribution operations. Entergy delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy owns and operates one of the cleanest large-scale U.S. power generating fleets with approximately 30,000 megawatts of electric generating capacity, including 7,000 megawatts of nuclear power. Headquartered in New Orleans, Louisiana, Entergy has annual revenues of $10 billion and approximately 12,500 employees. Learn more at entergy.com and follow @Entergy on social media.

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SOURCE Entergy Corporation

FAQ

What is the Orange County Advanced Power Station project by ETR?

The Orange County Advanced Power Station is a planned 1,215-megawatt dual fuel power facility by Entergy Texas, aimed at meeting growing energy demands in Southeast Texas.

How will the new power station benefit customers of ETR?

The project is expected to provide approximately $1.5 billion in net benefits by reducing reliance on energy markets for Entergy Texas customers.

What economic impact will the Orange County Advanced Power Station have?

The construction will create over 7,000 direct jobs and contribute nearly $1.8 billion to the regional economy.

When is the construction of the Orange County Advanced Power Station expected to start?

If approved, construction is anticipated to begin in the second quarter of 2023, with the plant expected to be operational by summer 2026.

How does the Orange County Advanced Power Station plan to use hydrogen?

The facility will utilize hydrogen as a clean fuel source, which produces zero carbon emissions, ensuring long-term sustainability.