Gas Power Plant Project in New Jersey Cancelled Due to Low Energy Prices
Residents living near Staten Island in New Jersey are rejoicing as Competitive Power Ventures (CPV) has scrapped its plan to construct a second natural gas-fired plant in Woodbridge. The company decided to abandon the project due to the low cost of energy.
CPV had hoped to build a new power plant adjacent to its existing one in Woodbridge, claiming it was necessary to meet the increasing energy demand and serve as a backup for solar and wind energy. However, the company revealed that market conditions had worsened to a point where the project was no longer feasible.
According to CPV spokesman Matthew Litchfield, the company’s agreement with PJM Interconnection required them to either begin construction or terminate the agreement by September 30. Market energy prices were too low to support the project, and unlike other energy sources like offshore wind and nuclear power, the natural gas plant wouldn’t receive state subsidies.
While the company will continue to operate its existing plant, it is exploring alternative uses for the proposed second power plant’s land.
Opponents of the project, including residents from Woodbridge and nearby low-income communities, environmental groups, and social justice advocates, celebrated the decision. They argued that the power plant would have added to the area’s pollution burden and worsened health issues, including respiratory problems in children.
Middlesex County, which includes Woodbridge, received an “F” grade from the American Lung Association for ground-level ozone pollution, which can exacerbate lung problems and is caused by activities like car exhaust and natural gas burning.
New Jersey’s environmental justice law, designed to protect overburdened communities from more pollution, did not apply to the CPV proposal since it completed its air quality permit application in 2017, before the law took effect.
Activists hailed this cancellation as a victory for clean air, environmental justice, and climate goals. They called on the governor to take decisive action to halt all fossil fuel expansion projects. The project’s cancellation prevented the release of over 2 million metric tons of greenhouse gases, significantly contributing to the fight against climate change.