Nuclear Power Plant Maker Offers to Replace Two Coal Fired Power Plants

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American Atomics, a new Tennessee-based nuclear power plant manufacturer, is offering to replace two coal fired power plants owned by Kentucky Power and TVA at no cost, and sell the electricity to the utility companies for only two cents per kilowatt-hour.

American Atomics will release a plan later this month to replace two of the nation's oldest fossil fuel fired power plants with modern, zero-emissions plants. The Gallatin Fossil Plant in Tennessee and the Big Sandy Power Plant in Kentucky would both be decommissioned and their base load power production duties assumed by the new environmentally neutral plants. Switchover from the old coal plants to the new AFPR plants would occur on June 1, 2020. Construction would begin in January, 2018 at both sites.

The Two Plants

The Big Sandy Power Plant in Louisa, Kentucky is a two unit coal fired power plant commissioned in 1963, supplying about 1 GW of base load power to the Kentucky Power Company grid. Following several years of discussion about possible future options, the plant is presently scheduled for retirement in 2015.

The Gallatin Fossil Plant in Gallatin, Tennessee is composed of a 1GW four unit coal plant providing base load power, and a peak generator system using gas turbines to produce another 600 MW of peak demand power. The overall plant produces about 7 billion kilowatt-hours of electricity per year, supplying about 500,000 homes and businesses. The plant is slated for about $1 billion in emissions related improvements by TVA, but can now forego those improvements based on simply being decommissioned in 2020.

The Offer: 2¢ Electricity

American Atomics will divert 170 units of its initial 1,000 unit mass production run of its AFPR 20 power cell, erect a 2 GW plant on the Gallatin Fossil Plant site, a 1.4 GW plant on the Big Sandy site, and switch over the supply to the grid from the old plants to the new plants on June 1, 2020. The company's commercial requirements are simply, first, the permission to build the plants, and second, agreements from Kentucky Power and TVA to pay 2¢ per kWH for the power that is supplied to their grids. This radically reduces their cost of power, and completely eliminates all capital costs to plant construction.

"To be clear, we want no money from Kentucky Power, TVA, or from any other government source," says Jack Campbell, CEO of American Atomics. "We only want to be paid each month for the actual power sold from our plants at a rate of 2¢ per kWH. We will pay for building them."

While the company does not have access to Kentucky Power's or TVA's precise current operating costs for these plants, industry data would suggest that their internal cost per kWH would be 7¢ to 10¢ per kWH (levelized cost). If so, this proposal will reduce the cost to Kentucky Power and TVA by over a factor of four.

Other consequences of this offer to close the old plants and replace them with modern AFPR power cell technology will be to eliminate all GHG and thermal emissions from the old plants, eliminate surface impounded coal waste, eliminate the mining of the coal for these plants, and replace them with clean, safe, carbon neutral supply sources. The company estimates that, together, these two plants produce over 12 million tons per year of CO² and 70,000 tons of SO² emissions. Also, they result in well over 1 million pounds of coal combustion waste being released each year to surface impoundments. Under this plan, this all stops in June 2020.

Ready To Proceed

American Atomics will submit a detailed offer to both Kentucky Power and TVA before the end of June for replacing the two plants noted above. The company will ask both utilities to provide a yes or no answer before the end of October, 2013, so as to allow time for the company's internal project planning.

"While we cannot promise to make this sort of deal with other utilities for replacing their old power plants," adds Campbell, "we can offer to simply sell them AFPR power cell technology based plants at a price of $2,000 per KW of capacity. This is a one time cost that includes the turnkey plant construction, 20 years of prepaid operations and maintenance, licensing, insurance, and importantly, no further costs for fuel. An AFPR power cell arrives at its site pre-fueled for 20 years of operation."

With 175 USA coal fired generators slated to be decommissioned over the next five years, and a total of 27 GW of capacity to be removed from the national electrical grid, American Atomics believes it only makes sense to leverage the existing electrical transmission infrastructure at these many sites and replace the old plants with new clean, safe, environmentally neutral AFPR power cell based plants.

About American Atomics

American Atomics is a Tennessee based technology manufacturer bringing a cheap, safe, environmentally neutral small atomic power plant — the AFPR 20 power cell — to market in June, 2020 that enables owner-operators anywhere in the world to profitably sell electricity at 3¢ per kWH or less. More information is available at the company web site at http://www.americanatomics.com.

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