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Firm to study carbon capture at San Juan Generating Station

FARMINGTON – Farmington has amended its non-binding letter of intent with Acme Equities LLC, a holding company based in New York.

The amendment changes two main things. Instead of referring to Acme, it refers to Enchant Energy – a New Mexico-based subsidiary of Acme.

The amendment also extends the exclusivity clause to Sept. 21, meaning Farmington cannot enter any negotiations for the San Juan Generating Station with any other entities until then.

The Farmington City Council unanimously approved the amendment last week.

The letter of intent says that the city may sell the San Juan Generating Station to Acme’s subsidiary, but City Attorney Jennifer Breakell said the document does not lock the city into selling it to Enchant Energy.

Enchant Energy has signed a contract with engineering firm Sargent and Lundy to complete a feasibility study examining installing carbon capture technology at the power plant. Sargent and Lundy completed a similar feasibility study in 2010 for Public Service Company of New Mexico.

The 2010 study found it would cost $50 million to build a connector pipeline to transport carbon dioxide to the Cortez pipeline used by Kinder Morgan to transport carbon dioxide from southwestern Colorado to Texas. It estimated it would cost $810 million to install carbon capture technology on Unit 1 and $1.06 billion to install the technology on Unit 4.