Abstract
Coal power plants are retiring in the United States due to a sharp decline in natural gas prices along with an aging fleet, the rising cost of coal, and decarbonization goals. In the last five years alone (2019–2023), more than 58 gigawatts (GW) of coal power capacity retired in the United States, while almost 30 percent of the remaining 194GW of operating capacity is expected to retire by 2040. The cessation of operations at an existing power plant can have important impacts on the local economy, including job loss and a potential reduction in total economic output. Repurposing these assets effectively, including conversion into other power generation technologies, industrial manufacturing facilities, or commercial buildings, among others, can at least partially offset any negative economic impacts. This paper provides a review of ongoing and planned repurposing activities related to former coal power plants (not including repurposing related to fuel-switching from coal to natural gas) being pursued by utilities across the United States and discusses the costs, benefits, and challenges presented by types of repurposing assets or prospects.22Some of the concepts/metrics described have standard language and the authors have tried to stick to the use of these terms for consistency. The review shows that the repurposing type and capacity of the new projects is typically unrelated to the asset type and capacity being retired. The decision to repurpose a retiring power plant or unit is a result of a combination of factors that include, among others, decommissioning costs, land availability, and financial and regulatory incentives directed towards a clean and just energy transition. A list of current planned, in-process (under construction), or completed repurposing projects for energy and non-energy alternatives is presented, including several reference examples of repurposing from fuels other than coal. Relevant factors to consider in repurposing existing retiring assets, including the relevance of incentives for retiring assets in a just energy transition, are identified and described.
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