Published: June 25, 2009 06:45 am      

NMU drops coal plant plans

DETROIT (AP) -- Facing challenges from environmentalists and a federally ordered review, Northern Michigan University said Wednesday it's withdrawing plans to use coal as a backup fuel in its new power plant, which now will burn only wood products.

The Marquette school said it is asking the state to cancel the permit for the 10-megawatt plant and said it will submit a revised permit request listing wood as the sole fuel.

"Our intent from Day One of this project has been to burn wood and wood byproducts, using coal only as a backup," university Vice President Gavin Leach said in a news release. "We've been exploring alternative wood storage and supply options to address weather-related issues, but we believe we have found ways to meet our demand throughout the year."

Environmentalists had been fighting plans for the generator, saying it would have unnecessarily added pollution blamed for global warming to the atmosphere.

"While we have some concerns about the source of the wood to be burned and potential impacts on the Upper Peninsula's forests, we applaud NMU for moving beyond coal," said Lee Sprague, manager of the Sierra Club's Clean Energy Campaign. "It's clear that following business-as-usual approaches like new coal plants is no longer an option."

The state Department of Environmental Quality approved the project last year.

But in February, an appeals board with the U.S. Environmental Protection Agency ordered Michigan to take another look at the permit.

The board told the state to consider setting limits on emissions from the plant of carbon dioxide and nitrous oxide. It also said state regulators erred in how they limited emissions of sulfur dioxide.

The project is among dozens of proposed coal boilers around the nation whose fates were thrown into doubt in November when the EPA appeals panel rejected a federal permit for a Utah plant because of inadequate carbon dioxide controls.

Gov. Jennifer Granholm issued an executive order earlier this year tightening rules for proposed new coal-fired power plants.

"Granholm has laid the groundwork for Michigan to move beyond coal, but the state won't be able to realize the benefits of a clean energy economy unless the governor follows through and makes a real commitment to ending the coal rush in the state," said James Gignac, Midwest director of the Sierra Club's Beyond Coal Campaign.

Northern Michigan's plant would provide heat and steam for the 9,400-student campus and neighboring Marquette General Hospital.

"We believe, once built, the cogeneration plant will result in significant cost savings to NMU and further the university's sustainability efforts," Leach said.