$33M Purdue energy plan nears approval

WEST LAFAYETTE, Ind. (AP) - Purdue University's $33 million plan to shift to natural gas for its future power needs is nearing final state approval, a year and a half after the school canceled plans for a new coal-fueled power unit.

The State Budget Committee last week approved the funds, which are needed for Purdue's plans to install a new combined heat and power unit, convert an existing coal boiler to natural gas and improve steam distribution.

Purdue is preparing to revamp its Wade Utility Plant and shift toward natural gas as the West Lafayette campus' main fuel source as part of a long-term energy plan.

The funding for the upgrades comes from a canceled $54 million project derided by environmentalists that would have indefinitely extended Purdue's use of coal for power.

Republican Sen. Brandt Hershman of Lafayette told the Journal & Courier for a story published Tuesday that the shift will "reduce the college's environmental footprint while providing top-notch facilities for students."

Bob McMains, Purdue's vice president of physical facilities, said he expects Gov. Mitch Daniels to approve the project in September, after the budget committee meets again.

Once approved, Purdue will request a modified operating permit from the Indiana Department of Environmental Management for the utility plant. That permit is needed due to the natural gas modifications to the boiler and other additions.

"I think everyone is happy with it," McMains said. "We expect it to be easier going than last time."

In 2006 and 2007, state officials approved plans for a $54 million project that would have replaced Purdue's existing 50-year-old coal boiler with a newer coal boiler. Environmentalists had sought to stop the expanded use of coal through protests and legal challenges to the school's permit application.

Purdue canceled its coal-expansion plans in February 2011 after school officials said they had found that the estimated increase in the cost of fuel and expected future regulations for coal use and ash disposal made the plan unworkable.

Environmental groups have welcomed the move toward natural gas, but they want Purdue to consider other alternative energy sources, such as biomass, wind, solar or geothermal power. Nearby Ball State University hopes to eventually eliminate use of its coal-fired boilers with a geothermal energy system that will tap the earth's nearly constant temperature for campus heating and cooling.

State Sen. Ron Alting, R-Lafayette, commended the budget committee last week for improving the plan. In fiscal year 2010-11, Purdue's power plant burned 178,000 tons of Indiana coal at a cost of more than $13 million.

Purdue's long-range energy master plan includes $80 million in recommendations through 2018, including building a 5-million-gallon thermal energy storage tank to provide chilled water to campus. The plans also would install power meters on more than 150 campus buildings to better understand how energy is used.