NRG ends plans for coal-fired power plant

NRG Energy (NYSE: NRG) said it is canceling plans to build an 800 MW coal-fired unit at its Limestone power plant in Texas.

According to Reuters, NRG voided the air permit for the Limestone 3 project, citing an “abundant supply” of natural gas. The permit was set to expire in December.

NRG said in 2006 it planned to invest $1.2 billion to build the Limestone 3 unit. NRG reached an agreement in 2008 with environmental groups to sequester carbon emissions from the plant and to not build another coal-fueled plant in the state unless it used integrated gasification combined-cycle technology. In exchange, the groups dropped their opposition to the air permit, which was granted in 2009.

The Limestone Station generates more than 1,700 MW of baseload generating capacity.

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