A proposed coal-fired power plant in northwestern New Mexico is still a good project despite setbacks like having its air permit pulled by the Environmental Protection Agency, says a representative of a Navajo Nation agency charged with developing energy projects.
The Diné Power Authority (DPA) told the Navajo Nation Resource Committee last week that it is in the process of reapplying for the air permit, The Navajo Times reported. What is unclear is whether DPA’s private development partner, Houston-based Sithe Global Power, will continue to pursue coal as an energy source for the plant.
“Desert Rock isn’t dead, it’s still a good project,” DPA General Manager Steven Begay told the Resource Committee. The use of Navajo Nation coal will generate royalties for the Nation, Begay said. Plus, a substantial investment in the project has already been made:
“We have to remember that there’s a tangible value there and we want to hold onto it and the way to do it is to support our coal development,” he said. “If we don’t stick up for coal development and let the opposition win, we’ll never get to develop our coal the way we want to and we lose a lot of royalties.”
After Begay’s report, Vice Chair Curran Hannon (Oak Springs/St. Michaels) read a comment from LoRenzo Bates (Upper Fruitland) reassuring the council’s support but also questioning if the project is worth continuing after facing many challenges.
Before answering the question, Begay said that at this point, the tribe has invested $20 million in Desert Rock, along with $20 million by Sithe, $20 million by the federal government and $10 million by BHP.
“There’s a lot of money that has been put into it, do we want to let it go,” he said. “I don’t think so.”
BHP refers to BHP Billiton, the company that mines coal from the Navajo mine.