LEWISPORT HANCOCK COUNTY

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1 LEWISPORT HANCOCK COUNTY ENERGY PROJECT SITE SUITABILITY 2009 Department of Energy Development and Independence Energy and Environment Cabinet Commonwealth of Kentucky

2 FOREWORD The Greater Owensboro Economic Development Corporation and the Hancock County Industrial Development Authority submitted this site for evaluation for potential development as an alternative energy facility. The site was evaluated against preliminary criteria which identifies characteristics beneficial for development of a wind, solar, biomass, nuclear, or coal-to liquid (CTL)/coal-to-gas (CTG) facility. This site benefits from excellent access to utilities, coal sources, and overall flat land. Cover photo (2006) - Proposed development site

3 The Greater Owensboro Economic Development Corporation (GOEDC) and the Hancock County Industrial Development Authority has offered the Lewisport property to be evaluated as a potential energy facility. The development of an energy facility, whether for CTL/CTG, wind, nuclear, solar or biomass, must consider basic common factors which include assets like access to transportation, general topography, proximity to public access areas, and available utilities. GENERAL SITE CONSIDERATIONS Ownership The site is currently used as farmland and is comprised of four contiguous tracts, bounded by the Ohio River on the north and Kentucky Highway 1603 on the east. The tracts are split by Kentucky Highway 334, Greathouse Road and Cooper Road. This site is listed on the Kentucky Economic Development Cabinet s website ( as Secondary Site Number The offeror has been authorized by the owners to offer the property for development. Aerial photograph depicting development tracts Page 1

4 Size The site consists of over 1,100 acres and is located on the Ohio River just east of Lewisport, Kentucky (USGS Tell City, IN-KY Topographic Quadrangle). Topography The majority of the site is flat and used for agricultural purposes. Site elevations, not located along the river, range between 400 to 410 above mean sea level (AMSL). Relatively flat area above the floodplain Floodplain and Wetlands Portions of the site located on the river bank are within the Ohio River floodplain. This area is typical Ohio River topography with a low-level area adjacent to the river and a significant rise in elevation (12-15 ) to a flat area above the 100 year flood elevation as depicted in the photograph on the following page. Page 2

5 Small wetland areas were identified on the site primarily associated with low areas or swales and ponds. The location, number and extent of the identified wetlands should be able to be managed in site development without significant impact. Property near the river Site Hazards Environmental databases were reviewed to determine if there is regulatory evidence that the site or a nearby property has been impacted by environmental issues. The Lewisport site is not identified on any 2006 FirstSearch Technology Corporation environmental databases searched, and no other sites were identified in the area within the search radius. Oil and Gas Wells The site has numerous operating and abandoned shallow oil wells that may need to be plugged and abandoned prior to industrial development. Page 3

6 Ohio River near property Sensitive Areas The proximity of non-attainment areas and Class I Visibility Areas to the site was examined for potential impacts to air quality or limitations on a required air permit for a CTL/CTG or biomass facility. The site is approximately 20 miles from the Evansville, Indiana non-attainment area, which may influence air quality permit conditions. Mammoth Cave National Park is within 70 miles to the southeast from the subject site and is a Mandatory Class I Visibility Area. The relative location of the proposed property to these assets will be considered in establishing air pollution permitting conditions. State water data was searched to determine if designated impaired streams in the area might affect discharge requirements for an energy facility. The proposed site is located on the Ohio River. A review of water quality issues shows that the Ohio River is designated as warm water aquatic habitat, primary contact recreation, secondary Page 4

7 contact recreation, and domestic water supply waters in 401 KAR 10:026. In addition, the (d) List reports the Ohio River as having polychlorinated biphenyls (PCBs) and dioxins as pollutants of concern that are impairing fish consumption along this portion of the Ohio River. These water quality issues may influence effluent limitations when obtaining a Kentucky Pollutant Discharge Elimination System (KPDES) discharge permit. Siting considerations for any energy facility include the presence of Threatened and Endangered (T&E) species in the area, the presence of significant cultural or historical resources in and around the project area, and proximity to public access areas and airports. Historical marker on property Publicly available information on Hancock County archeological and cultural areas was reviewed. A significant historic house is located on the western portion of the site. While it may be possible to build the facility while leaving this structure intact, its importance may result in a finding of significant impact. The Samuel Pate house is Page 5

8 listed with national historic significance related to Abraham Lincoln who was tried in this house for operating an illegal ferry service across the Ohio River. The State Historic Preservation Officer (SHPO) also advises that property along the Ohio River is frequently found to have significant archaeological sites. Further investigation of cultural historical resources and potential mitigation activities would be required prior to developing this site. Historical House on property The Hancock County Airport is currently under construction just to the southwest of the site. The location of this airfield could present significant safety issues should the approach pathways lie near the proposed facility. Public records were reviewed to determine the possibility of impact to T&E species. No federal T&E species have been documented as present within the area covered by the Tell City topographic map. State threatened species documented as present include the Sharp-Shinned Hawk. The potential for critical habitat will need to be carefully Page 6

9 evaluated to ensure that these species will not be impacted by the development of a facility. Geological Assets Siting considerations for a biomass or CTL/CTG process must take into account available geological assets for potential sequestration. Analysis by the Kentucky Geologic Survey (KGS) ranked the geologic assets for the site as low. The following graphic depicts geologic assets within a 15 mile radius of the site, indicating that producing oil fields surrounding the site. The site is labeled N on the graphic map. The Devonian shale, which is the primary seal, is present with the average depth to the top of this structure being about 2,100. The average depth to the Knox, one of the primary sequestration targets in the area, is identified as about 5,200. The St. Peter and Mt. Simon sandstones are also present. Deep, un-mineable coal beds are not identified in the immediate area. The proximity of faults to a site may impact the development of a nuclear, biomass, or CTL/CTG facility. Seismic risk at the proposed site has been assigned to be medium risk by the KGS as the site s location is east of the outer range of the high seismic risk areas found in far western Kentucky. An un-named fault is located 1.76 miles westsouthwest of the site (KGS Petroleum Geology Map). Page 7

10 Utilities The site is reported to have access to DSL broadband service from the Lewisport Telephone Company. Basic roads, electric service, water, and sewer are also available at the site. Page 8

11 State Route 334 Transportation Road access is essential for any large industrial facility and particularly so for an energy facility that brings in its fuel or trucks out its product. Road access is via KY 334, a 2- lane paved road, which runs east/west through the site. KY 1605 also runs south along the three southern tracts. KY 1605 converges with KY 334, near the northeastern corner of the 290 acre tract. Portions of this road are not suitable for industrial hauling. Although not a significant siting consideration for a solar, nuclear or wind facility, a biomass or CTL/CTG facility will require several transportation options due to the substantial feedstock required for these technologies. Transportation aspects are potentially favorable, but not currently in place. At this time the only viable transportation is by 2-lane road, portions of which are not adequate for heavy transport. A CSX rail line is located about 3000 feet south of the site. A spur and siding would have to be extended, if possible, in order to utilize this transportation option. Based on Page 9

12 the length of shore on the Ohio River, a barge facility may be able to be developed. A large barge operation is currently located across the Ohio River. Transmission Any energy facility will require access to electric transmission connectivity. A 69kV line should be an adequate capacity to carry generated power from a solar facility in Kentucky. A nuclear, biomass, wind or CTL/CTG facility would require access to larger electric transmission lines. The nearest suitable electric transmission connection point is southeast of the site. Several line types, both 345 kv and 161 kv, are located just beyond the site, and run both east-west and north-south. Natural gas is used as a feedstock and fuel in CTL/CTG and for some biomass facilities, making access to a supply important. Additionally, if the facility makes synthetic natural gas, access to a gas transmission pipeline will be important in getting products to market. The nearest natural gas connection is a 6-inch diameter pipeline located 6,000 east of the site, supplied by Lewisport Natural Gas System. Water Supply Available water supply is a critical project component for the development of a CTL/CTG, biomass or nuclear facility. The proposed site benefits from its proximity to the Ohio River. Lowest mean annual flow recorded at station is 46,609 million gallons per day (MGD). When comparing these numbers to the flow requirements of an alternative energy facility, the source is more than adequate and Kentucky Division of Water personnel have stated that this type of facility should have no problem obtaining a water withdrawal permit for process water at this location. Typically, a CTL/CTG or biomass facility require a minimum of 2,500 gpm or 3.6 MGD for process or cooling water needs, and a nuclear facility requires a minimum of 8,000 gpm or 11.5 MGD for cooling water needs. The Ohio River will easily meet the Page 10

13 requirements for a cooling water supply necessary for a CTL/CTG, biomass, or nuclear facility. Workforce Availability Development of a CTL/CTG, biomass, or nuclear facility would require access to an adequate supply of construction and skilled labor. The potential labor pool must be reviewed for both Daviess and Hancock Counties. The demographics below represent information maintained by the Kentucky Economic Development website, and indicates almost 250,000 workers within the overall labor market. Hancock and Daviess Counties labor markets Source: Civilian Labor Force Daviess and Hancock Counties Labor Market Area 2007 Oct Oct Civilian Labor Force 51,758 50, , ,695 Employed 49,206 47, , ,032 Unemployed 2,552 2,994 11,975 13,663 Unemployment Rate %) Source: U.S. Department of Labor, Bureau or Labor Statistics Page 11

14 Other General Characteristics The proximity to military sites was reviewed in order to consider the potential impact of an energy facility to military training routes or long range radar. Based upon information produced by the Federal Aviation Administration s Department of Defense Screening Tool, the proposed site has no anticipated impact to long range radar or weather service radar or military operations. However, further documentation and confirmation is recommended prior to site development. Atmospheric extremes, such as tornadoes, are capable of structurally damaging a facility and must be considered particularly during siting for a solar, nuclear, or wind facility. Based upon Federal Emergency Management Agency mapping, the site appears to lie within an area of high risk. TECHNOLOGY SPECIFIC CONSIDERATIONS CTL/CTG For a CTL/CTG facility, access to coal resources is important. The site is located within Hancock County, which is a small coal producing county in Kentucky. In order for a CTL/CTG facility to succeed, it needs readily available and proven coal reserves in proven quantities to sustain the operations. The facility should also have access to more than one coal supplier in order to remain competitive and, optimally, be able to have coal delivered to the proposed plant site by more than one transportation mode, at competitive prices. Transportation aspects are potentially favorable, but not currently in place. At this time the only viable transportation is by 2-lane road, with portions not suitable for industrial hauling. A CSX rail is located about 3000 south of the site, although a spur and siding would have to be extended in order to utilize this transportation option. Based on the length of shore on the Ohio River, a barge facility may be able to be developed. A large barge operation is currently located across the river. At this time, the only available transportation is by road. Page 12

15 Solar Adequate solar radiation is critical to the successful generation of solar power. A successful site should be relatively free from land cover, and not within a mile of a corporate city boundary. The Lewisport site has an average direct normal solar radiation of 4.23 KWh/m 2 /day and an annual solar radiation value for two-axis flat plates of 6.41 KWh/m 2 /day. Based upon this average solar radiation, too much cloud cover and haze is present to be effective as a large scale facility. The site is predominantly flat and free of land cover, which would potentially eliminate refraction, reflection, and absorption issues. Solar installations in large mass can be a visual distraction to local communities; however, this site is greater than a mile from an urban community. Although the site is located a mile from any city corporate boundary, several residential properties are located within immediate proximity, and an airport is located close by. Visual impacts to these areas should be considered during the development process. Solar insolation map Page 13

16 Wind The most critical component for a successful wind facility is adequate and consistent wind speed. In order to generate enough power to be a utility class facility, a mean wind speed at 60 meters of 5.6 meters per second (m/s) or greater is required. Information obtained from AWS Truewind, indicates that the average wind speed at 60 meters for the site is 4.88 m/s. Without adequate wind speed, other factors, such as foundational concerns, potential visual impacts, telecommunication interference, impacts to birds and bats, as well as operational concerns such as ice shedding, noise, blade drop and throw, and flicker are moot. Wind speed measurements to accurately assess the available resource at any potential development site would be required prior to final planning. Mean wind speed 4.88 m/s Page 14

17 Biomass An adequate feedstock supply environment includes available crop residues, animal manure, forest residues from former silviculture or clearing, primary and secondary mill residues, urban residues (i.e., wood scraps from local business such as lumberyards), landfill gas, domestic wastewater, or switchgrass. Information obtained from the National Renewable Energy Laboratory indicates that the total biomass available within Hancock County is 31,111 tonnes per year. Biomass in Hancock and its neighboring counties is approximately 1.03 million tonnes/year. These supplies (>500,000 tonnes/year) provide adequate feedstock, and represent some of the largest availability in the State. Analysis of the potential in the area to grow feedstock specifically for a biomass facility should also be part of the planning process. Nuclear A limiting factor to the development of a nuclear facility is available water supply. A minimum of 11.5 MGD of water is required to meet basic nuclear facility needs. The lowest mean annual flow record at station along the Ohio River is 46,609 MGD. This is more than adequate to meet the needs of a nuclear facility. Safety issues associated with nuclear facilities include ensuring an adequate controlled buffer zone of at least 2,000 radius around the facility and an effective emergency plan. These aspects mean that the best location for a nuclear facility is a rural or undeveloped site. The offeror controls a 2,500 radius from the center of the largest available tract, which would meet typical exclusion zone requirements. The site benefits from its location distant from densely populated communities (i.e., greater than 25,000 persons) such as Owensboro and Evansville, which are 20 and 45 miles away, respectively. However, several residential roads bound the property perimeter, and the site is located in a residential area, making this an unsuitable location. Furthermore, egress is limited to one major road in the area, Highway 60. Only one bridge crosses the Ohio River near the site, which is at Hawesville to the west. Further investigation would be required relating to these requirements prior to development. Page 15

18 Atmospheric considerations can be important for a nuclear facility to avoid the possibility for interaction of the nuclear cooling system plume with a plume containing noxious or toxic substances from a nearby facility. The nearest air permitted facilities identified by the Environmental Protection Agency s (EPA) Enviromapper is within five miles north of the subject site in Indiana. Dominant wind patterns will need to be reviewed prior to developing the site. SUITABILITY In summary, the Lewisport site, located within the Western Kentucky Coal Fields, can be viable site for a potential alternative energy facility. The site scored a total of 833 points, representing 69% of the total available points for a CTL/CTG facility. Similarly, for a biomass facility, the site scored a total of 884 points, representing 70% of the total available points. The site has flat land, plentiful water resources, and access to sufficient biomass feedstock. Although not currently available at the site, it also has the potential to have excellent power, gas and transportation options. The site can pull from a large labor market area to supply both construction and operational workers. The Lewisport site suffers from the existence of a significant Abraham Lincoln-associated historic house, a rural and residential character, the close proximity of an airfield, and a Class I Visibility Area. The site does not exhibit ideal geologic characteristics although there are possibilities for sequestration. The existing transportation and energy options must be improved to make development at this site possible. The site scored a total of 603 points for a potential nuclear facility, representing 56% of the total available points. Limited egress and site control contribute to the low score. Due to a low average mean wind speed, this location is not a viable location for a utility scale wind facility. Additionally, available solar radiation at the site is too low to produce a significant source of energy for a utility-sized solar facility alone, with a site score of 435 points, representing 47% of the total available points. Proximity to residential areas and an airfield provide further limitation. Page 16

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20 Kentucky Department for Energy Development and Independence Metro Street 12 th Floor, Capital Plaza Tower Frankfort, KY (502) or (800) Smith Management Group Mercer Road Lexington, KY (859) The Greater Owensboro Economic Development Corporation 200 East 3 rd Street Owensboro, KY (270)