Q&A Indeck addresses frequently asked questions

company’s partnership with two South Korean companies. The South Korean companies, KOSPO and Daelim Energy Company, have invested in the venture and are now the majority investors in the project. This is the first joint power plant project between South Korea and the U.S.

For local officials, the Indeck Niles Energy Center project provides a steadying and stabilizing influence on the local economy during the current pandemic. As Huff noted, the construction never shut down even when others were sidelined.

“Kiewit (the contractor) has about 200 workers on site now and this number will increase in June as above ground steel work begins,” Huff said. “Workers are living in Niles and nearby towns and this, of course, helps support local economies. Until COVID-19, many of these workers were frequenting local business for supplies, meals and other needs.

“We are very hopeful conditions with this emergency will quickly improve so that our local businesses can once again benefit from this substantial workforce,” he added. “It is estimated that

during construction, Indeck and Kiewit will spend $131.7 million in Southwest Michigan with about $83.7 million of that in the local area.”

Huff said that the city will see a modest increase in tax revenue during the construction phase of the plant with more revenue coming in to the city in 2023. That’s especially helpful now during the pandemic.

“Even small amounts of revenue are very important during this emergency,” he said. “We are seeing revenue losses that exceed the Great Recession.”

Having the Indeck project become a reality will be a boon to everyone in the greater Michiana region, Greater Niles Chamber of Commerce President Jeff Rea said last fall.

“We couldn’t be more excited about this project which has been 20 years in the making,” Rea said. “This is the largest single investment we’ve seen anywhere in the region.

“Very few communities have been able to attract this scale of a project,” he added. “We hope that success will breed success. This helps put us on the radar screen, and I would like to think that it will lead to other opportunities.”

YOUR QUESTIONS ANSWERED

On Sept. 4, the Niles Indeck Energy Center broke ground in Niles’ industrial park. The $1 billion, 1.085-gigawatt natural gas power plant is scheduled to begin operating in March 2022. When it does, it will power an average equivalent of 700,000 homes. Below are a series of frequently asked questions regarding the project.

Does South Korea own the center?

No. According to city documents, two companies based in South Korea partially own Niles Indeck Engery Center.

South Korea-based power plant company KOSPO owns half of the center. KOSPO provides nearly all the electricity in its home country, but it has international energy projects that power local areas.

South Korea-based Daelim Energy — an engineering, construction and petrochemical company — owns 30 percent of the center. It has other international projects.

Indeck Energy Services, of Buffalo Grove, Illinois will own the remaining 20 percent of the center.

Who will receive the electricity created?

Officials stated at Indeck’s groundbreaking ceremony that energy will be directed to the national grid, not to specific people or places. The 700,000 homes the Niles Indeck Energy Center said it can, on average, power are not specific homes, but an equivalent of the amount of energy it can create.

What types of emissions will the power plant release? How much? What are the risks?

According to a November 2016 air quality permit for Indeck by the Michigan Department of Environmental Quality (now known as Department of Environment, Great Lakes and Energy), the following are the estimated yearly emission rates, including startup of the power plant.

The estimated rate is compared with a significant emission rate set by the national government. All but lead exceed the significant emission rate.

Each pollutant is measured in tons per year. All information on the pollutants and their effects are from the Environmental Protection Agency unless otherwise stated. • Nitrous oxides — This is a group of gases that are highly reactive. Nitrogen dioxide is not specifically mentioned by the air quality permit, but it is known to be common in fossil fuel burning. CONTINUED ON PAGE 30

Nitrogen dioxide can cause respiratory irritation and difficulty breathing. Long-term exposure can lead to asthma and susceptibility to respiratory infections.

Many nitrous oxides cause acid rain, which can harm ecosystems, such as forests and rivers. Indeck is projected to create 494 tons per year. The national significant emission rate is 40 tons per year. • Carbon monoxide — This colorless, odorless gas is released when something is burned.

Carbon monoxide reduces the amount of oxygen transported in the blood stream, which can impact a variety of organs, but it must be in high concentrations. Usually, carbon monoxide only becomes a threat when in an enclosed space.

Indeck is projected to create 2,009 tpy. The national significant emission rate is 100 tpy. • Particulate matter — This is a mixture of particles and droplets found in the air. Some are emitted directly from a source, while others form from chemical reactions. Various forms of smoke and dust are examples of particulate matter.

Fine particles can lead to respiratory problems and eye irritation. Some of its chemicals can cause other effects. If the particulate matter is large enough, visibility may be compromised.

Floral growth can be stunted if matter is in high concentrations for extended periods of time.

Indeck is projected to create 181 tpy. The national significant emission rate is 25 tpy. • Sulfur dioxide — This chemical is largely produced by burning fossil fuels at power plants. In high concentrations, it can combine with other compounds to create particulate matter.

Short-term exposure can cause respiratory problems, especially for those with asthma. Sulfur dioxide can also damage flora, decrease floral growth, contribute to acid rain and create a haze.

Indeck is projected to create 103 tpy. The national significant emission rate is 40 tpy. • Lead — Lead is used in the production of energy products, such as gasoline, metal alloys and batteries.

It can affect the nervous system, kidneys, immune system, cardiovascular system, reproductive system and immune system in various ways depending on concentration and duration of exposure. Infants and young children are especially sensitive, and their development may be affected.

Lead can also stunt development and reproduction in plants and animals.

Indeck is projected to create 0.00363 tpy. The national significant emission rate is 0.6 tpy. • Volatile organic compounds — These are a variety of chemicals that are emitted from a variety of objects as gases. Common objects that release these chemicals are fuel oil, paints, varnishes, upholstery and cigarettes.

Facial irritation, headaches, nausea and loss of coordination can occur. More serious potential risks from long-term exposure can include liver, kidney and nervous system damage and cancer.

Indeck is projected to create 948 tpy. The national significant emission rate is 40 tpy. • Sulfuric acid mist — This chemical is typically associated with coal-fired plants, but it can occur in other power plants, too.

Some studies have shown repeated exposure can cause teeth decay and varying respiratory problems.

Indeck is projected to create 40.2 tpy. The national significant emission rate is 7 tpy.

Greenhouse gases — An umbrella term for the various gases, such as carbon dioxide and methane, that absorb and reemit heat. The gases are closely related to the rapid heating of the earth.

Increased yearly average temperatures can be created by greenhouse gases. This increases can have a variety of effects on crops and human lifestyles.

Indeck is projected to create 4,302,486 tpy. The national significant emission rate is 75,000 tpy.

Has Indeck exceeded its emission limits?

No. Although all of Indeck’s estimated emissions except for lead are more than their significant emission rates, this does not mean that Indeck is breaking the law.

Indeck’s emissions are permissible under national air quality standards so long as the company adheres to the following four guidelines as determined in the air quality report: install best available control technology for each power plant object responsible for emission creation, have an air quality analysis, provide an additional impact analysis and allow public involvement.

Indeck is required to install best available control technology as it undergoes construction. Its air quality analysis and its additional impact analysis have already been completed.

Its public involvement is still open. Concerned citizens can request a public hearing until Oct. 14. If one is proposed, an informational session will be hosted at 5:30 p.m. Oct. 17 and a public hearing will be hosted at 7 p.m. at Northside Child Development Center at 2020 N. Fifth St. in Niles.

A written request for a public hearing can be sent to Annette Switzer, Permit Section Manager, EGLE, Air Quality Division, P.O. Box 30260, Lansing, Michigan, 48909-7760.

Will there be noise and light pollution?

David Hicks, Indeck Energy Services Vice President of Business Development, said Indeck will at minimum comply with noise and light pollution ordinances put in place.

Are local union workers being contracted for construction?

Yes. Kiewit Corporation, of Omaha, Nebraska, is the construction contractor, and it is contracting about 500 workers from local union halls.

Hicks said local work was preferred because it positively impacts the local community and because no relocation work is needed.

What types of full-time jobs will be created?

When construction is completed in 2022, Indeck plans to hire 21 full-time staff. Hicks said the final pay rates are not yet determined, but pay would be similar to other high-level technical positions with other plants.

Most roles would be manager and supervisor positions, which Hicks said are highly skilled and have extensive, detailed training programs.

He said power plants tend to hire those who have served in the military, particularly the U.S. Navy. Hicks said their work on naval ships, with boilers and with equipment that powers vessels translates well into power plant operation.

Is Kiewit on track with construction?

Hicks said that Kiewit was on track with its construction plans.

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DSS Valves

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Alro Steel

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Berrien Metal Products

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Indiana Michigan Power - South Bend

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Modineer Company

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