SPONSORED CONTENT
Gypsum, seen above, is created as LG&E and KU remove nearly 100% of sulfur dioxide from power plant flue gas. It is one of three by-products of coal-fired power generation that is safely recycled through partnerships; used to make things like wall board, cement and fertilizer; and earns savings that are passed back to LG&E and KU customers. Photo furnished
Utilities’ sale of byproducts from coal-fired generation continues to pay off
Louisville Gas and Electric Company and Kentucky Utilities Company employ a variety of different efforts and partnerships to ensure the utilities’ more than 1.3 million customers get the quality energy-service they expect at the most reasonable cost. Those efforts continue to pay off. In fact, one of them delivered nearly $19 million dollars in revenue back to LG&E and KU business and residential customers in 2022.
The revenue is a result of LG&E and KU’s sustainable efforts to recycle by-products left over from the power generation process.
“We recently announced plans to retire a third of our older, coal-fired generation by 2028 and will continue to gradually take all of our coal-fired units out of service, but while they’re still in operation, we’re responsibly managing and maximizing opportunities to market the by-products,” said LG&E and KU Chief Operating Officer, Lonnie Bellar.
Coal combustion residuals – which are often referred to as CCRs include fly ash, bottom ash and gypsum – are what’s left over after coal is burned to help meet customers’ energy demands, which require tens of thousands of megawatt-hours of electricity each day. Per U.S. Environmental Protection Agency approval, CCRs can be safely recycled and beneficially used to make products such as concrete, cement, fertilizer, porcelain tile, wallboard and roofing shingles, which are where the marketing of the byproducts comes in.
In one of its most recently approved partnerships, the utilities are contracting with Geocycle LLC, a wholly owned subsidiary of Holcim (US) Inc., to market fly ash for use in blended cements for a variety of different customers.
“We’re honored to partner with LG&E and KU to develop and create efficient solutions that contribute to the circular economy,” said Sophie Wu, Head of Geocycle North America. “Our work together helps further carbon neutral construction, helps pass savings along to LG&E and KU customers and demonstrates our commitment and passion for recycling and achieving a net zero future.”
As the number of coal-fired power plants and CCR suppliers across the U.S. continues to decline, the materials continue to increase in value. More than 70% of CCRs across the LG&E and KU generation fleet were beneficially used in 2022. Since 2016, LG&E and KU’s beneficial use has generated more than $61 million in savings for LG&E and KU customers.
In Dec. 2022, LG&E and KU announced plans to retire 1,500 megawatts of the utilities’ aging coal-fired generation. To replace that generation, the utilities have submitted plans to the Kentucky Public Service Commission that include building two, 621-MW natural gas combined cycle plants, adding about 1,000 MW of solar, 125-MW of battery storage and the largest energy efficiency portfolio in the utilities’ history, with 14 proposed new program offerings.
To learn more about how LG&E and KU’s sustainable efforts are benefitting customers and Kentucky, visit lge-ku.com/future.