Alaska natural gas crunch is increasing demand for a traditional fuel — coal

A coal-fired powerfulness works is seen successful Healy, Alaska, not acold from Denali National Park and Preserve. (Cropped photograph by Craig Talbert republished nether Creative Commons license)

Southcentral Alaska’s earthy state crunch is boosting request for coal-fired powerfulness hundreds of miles inland, a motion that a looming proviso crisis will person far-reaching consequences crossed Alaska.

In a late-August filing with nan state’s inferior regulator, nan electrical cooperative for Fairbanks said it had signed a six-year statement pinch Usibelli Coal Mine to proviso Healy 2, a troubled coal-fired powerfulness plant. 

Until February, Fairbanks’ cooperative, Golden Valley Electric Association, had planned to unopen down Healy 2 because of its precocious attraction and operating costs.

“The greater interest now is that nan earthy state shortage successful nan Cook Inlet will worsen, resulting successful a perchance captious business for nan Alaska Railbelt utilities starting successful 2027,” GVEA said successful nan filing.

Since 2022, nan largest earthy state supplier successful Southcentral Alaska has warned astir an impending proviso crunch for nan region. 

Natural state is nan main root of location heating and energy successful Anchorage and nan surrounding area, and Cook Inlet has ample supplies of underground gas, but gas-sellers person grounded to drill capable caller wells to support up pinch demand. 

Experts expect that by nan extremity of nan decade, location won’t beryllium capable earthy state to meet demand. 

The effects of that situation agelong from Homer to Fairbanks and Delta Junction, encompassing much than two-thirds of Alaska’s residents.

“It’s not conscionable a Southcentral issue. It surely impacts america present up successful Fairbanks arsenic well,” said Ashley Bradish, GVEA’s head of outer affairs.

Fairbanks generates astir of its powerfulness via diesel and coal-fired generators and has immoderate of nan highest prices for location energy connected nan Railbelt. 

Starting successful 2023, it began buying constricted amounts of cheaper gas-fired powerfulness from Southcentral via nan 170-mile Alaska Intertie, which threads done nan Alaska Range. It besides bought what nan inferior refers to arsenic “economy energy” from Southcentral utilities.

“In 2023, procreation from those 2 sources made up 10 percent of GVEA’s proviso mix. The nonaccomplishment of system power purchases successful 2024 dropped this number to 6 percent. Starting January 2025, purchases up nan Intertie from earthy will beryllium astatine 0 percent,” nan inferior said successful its regulatory filing.

During a acold threat this past winter when earthy state supplies ran low, nan intertie really ran successful reverse, pinch GVEA sending a mini magnitude of powerfulness south, Bradish said. 

The Alaska Energy Authority operates nan intertie, and Curtis Thayer, its executive director, couldn’t callback a anterior lawsuit of that happening. Nor could Bradish astatine GVEA. 

“I don’t cognize nan past clip it was done. It was a unsocial circumstance,” Thayer said. 

By turning to coal, GVEA is bucking a semipermanent trend. Coal emissions person been linked to ambiance change, and utilities crossed Europe and nan United States person been phasing out coal-fired power. 

Alaska has 1 operating ember mine, Usibelli adjacent Healy, and GVEA has two powerfulness plants near nan mine. 

Healy 1, which has been operating since 1967, uses astir 133,000 tons of ember per year, said Lorali Simon, Usibelli’s vice president for outer affairs. Healy 2, which has been operating commercially since 2018, consumes astir 209,000 tons. 

Alaska’s ember accumulation peaked successful 2010 astatine much than 2 cardinal tons per year, but ember exports declined successful nan 2010s, and nan state’s lone ember export terminal closed successful 2016. It’s now being dismantled. 

In each that time, and continuing today, nan state’s home ember usage stayed dependable astatine astir 1 cardinal tons per year, according to figures published by nan national Energy Information Administration.

Healy 2’s closure, sought by biology groups, would person meant a important decline. The caller statement apt intends unchangeable depletion levels done nan extremity of nan decade.

GVEA, for illustration Alaska’s different utilities, is encouraging nan improvement of renewable powerfulness — things for illustration upwind and solar. But besides for illustration Alaska’s different utilities, it still needs what’s known arsenic “base load” power, thing that tin beryllium turned connected erstwhile nan upwind stops blowing aliases a unreality blocks nan sun. 

“It is basal that GVEA person successful spot a substance root that is affordable, readily available, and tin beryllium relied connected for nan years ahead. With GVEA’s loads being reasonably unchangeable for nan foreseeable future, nan value of gathering nan existing load requirements and having a reliable root of power are paramount, frankincense justifying nan request for nan 2024 Agreement,” nan cooperative said successful its August filing.

In parts of nan Lower 48, nan electrical grid is dense capable that it tin easy stock adaptable powerfulness sources for illustration upwind and solar. If nan upwind stops blowing successful 1 area, a windy spot adjacent tin simply return up nan slack. 

Alaska’s Railbelt electrical grid presently struggles nether those scenarios, but that’s opening to change. AEA, nether Thayer, precocious received a $200 cardinal grant to upgrade parts of nan grid successful Southcentral Alaska. 

A 2nd shape of nan task will upgrade nan intertie to Fairbanks. 

AEA’s Bradley Lake hydropower plant currently offers immoderate of nan cheapest electrical powerfulness successful nan Railbelt, and AEA is planning an description . 

Thayer said nan Bradley Lake powerfulness wouldn’t wholly lick nan earthy state problem, but it would thief by allowing utilities to usage state for location heating alternatively of electricity.

“At nan extremity of nan time we usage nan earthy state for not only electrifying our homes, but besides location heating. I don’t attraction wherever my electrical powerfulness comes from, wind, solar, hydro, earthy state — immoderate — but I decidedly want that thermostat to work,” he said.

Bradley Lake could beryllium a hole for Southcentral, but it isn’t clear whether it will thief Fairbanks. According to GVEA’s latest powerfulness costs reports, nan costs to make and vessel reservoir powerfulness to GVEA is greater than nan costs to make and vessel ember power, moreover from Healy 2. 

If that holds existent successful nan coming years, ember whitethorn beryllium a cardinal portion of Alaska’s power image for galore much years to come.