What is the plant really going to cost to build?

Cost estimates for this plant have risen dramatically, from $1.2 billion in 2005 to $2.9 billion in early 2008, plus financing. Because this is a “take or pay” contract, local electric customers will be obligated to pay the full costs of the plant, no matter what they end up being.

The January 2008 feasibility study by R.W. Beck said it was unlikely that AMP-Ohio would be able to obtain a full fixed price contract (p. 9 of Beck study). Since that time, AMP-Ohio has been negotiating with a major contractor to oversee the project. Has the contractor provided a fixed price? What will the cost be?

AMP-Ohio’s cost estimates include an assumption that the plant will be able to make money by selling fertilizer created from the PowerSpan process. Is this realistic? Will the fertilizer be contaminated with mercury? If this process doesn’t work, won’t the price tag for this plant go up even further?