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Farmington Spotlight

Posted on: April 12, 2019

NEWS RELEASE: Letter of intent between City of Farmington and Acme Equities extended


Letter of intent between City of Farmington and Acme Equities extended

City, Acme Equities and Enchant Energy negotiating public-private partnership 

Farmington, NM - The City of Farmington is pleased to announce the unanimous decision of the city council to extend the letter of intent between Farmington and Acme Equities, a New York City based investment firm that focuses on North American energy assets, for an additional six months. The goal of the expanded LOI is to work with Acme Equities and the new company formed by Acme, Enchant Energy Corporation of New Mexico, to retrofit the San Juan Generating Station with carbon capture technology that will enable the plant to generate power beyond 2022 with the lowest (non-nuclear) CO2 emissions in the Western US. This plan preserves jobs for both the power plant and mine workers, their suppliers and subcontractors and protects critical property tax revenues that are so important to our community.

The City of Farmington, Acme Equities and Enchant Energy are also negotiating to create a viable public-private partnership to protect and enhance community member interests. “We are excited to take this next landmark step in our efforts to create opportunity out of such potential adversity as the closure of one of the largest economic drivers in our community. The City is diligently working with Enchant Energy on the carbon sequestration retrofit project to preserve jobs and much needed revenues for our community, while at the same time being an international leader in providing economic and environmentally responsible power,” said Mayor Nate Duckett.

Enchant Energy LLC, acting as the developer of the carbon capture project, is pleased to announce that they have retained Sargent and Lundy, a prominent Chicago-based engineering firm, to evaluate whether installation of CO2 controls at San Juan Generating Station is an economically viable enterprise. Important factors in this analysis are recent declines in the cost of carbon capture systems, as well as the built-in advantages of the San Juan Generating Station, including recently upgraded environmental systems, close proximity to a major commercial CO2 pipeline, and improved federal tax credits.

The City of Farmington and Enchant are particularly pleased to work with Sargent and Lundy because they are very familiar with the San Juan Generating Plant where they have advised PNM on several projects and they also have leading expertise in carbon capture technology as they were the owner's engineer for the retrofit of the Petra Nova power plant that has been successful in reducing CO2 emissions by 90% from a coal-fired power plant in Texas since 2017.

Additionally, the City of Farmington and Enchant Energy have begun negotiations with the current part-owner and operator, PNM Energy, as well as other owners of SJGS, to enable the carbon capture retrofit at SJGS to progress in a timely fashion following abandonment by PNM and the other owners in 2022.

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