Ethane-to-Power: Hoston Electric’s NGL Fractionation Plant in Tennessee and ConocoPhillips Teeside Terminal NGL Fractionation Plant Project in the UK

 

     In mid-2024, Hoston Electric Cooperative began producing power from “waste” ethane at its NGL fractionation plant in Bull’s Gap, Tennessee. This is the first facility of its kind in the U.S.  The project initially generated power with a single Jenbacher 420 reciprocating internal combustion engine generator. The company’s plans were to add three more generators to generate enough power for about 3600 residential power customers. However, since the first deployment was approved for testing purposes, the company was denied approval by the Tennessee Department of Environmental Conservation due to the permits being “incomplete.” Specifically, they needed to make a determination of air emissions below the threshold for ‘insignificant activity’ (<5 tons per year of each regulated air pollutant and <1,000 pounds per year of each hazardous air pollutant). Thus, the permit was denied pending that determination. The company also removed the first generator, a rental, after the initial testing period.

     The latest news from April 2025 is that the company plans to have generations at the plant producing 4.2 MW of power for about 1400 customers sometime in 2026.  The cost for the project is about $4.5 million. The company performed cold-weather testing and hot-weather testing.

     In the UK, ConocoPhillips intends to build an ethane-to-power plant associated with an oil terminal. The project expects to produce less than 49.9MW at peak production with up to 18 generation units.

“Over time, as throughput to the Oil Terminal decreases further, the number of gas engines required will decrease and units will be removed from operation. The Proposed Development will be in continuous operation 24 hours per day, seven days per week.”

     This is another case of an NGL fractionation plant using a part of its excess ethane to generate power. They already use some ethane, combined with methane, to produce power at the plant. Since a certain amount of ethane must be removed so that the natural gas is of acceptable pipeline quality, there is a need to monetize the remaining ethane. Using it to generate electricity is one approach. I am guessing that in the Tennessee case, Hoston Electric is purchasing the ethane from the local fractionation plant at a favorable discount so that both companies can benefit. ConocoPhillips would be utilizing the ethane that it owns.

 

References:

 

Holston Electric unveils new ethane-to-power generation plant. Slater Teague. JHL News Channel 11. June 28, 2024. Holston Electric unveils new ethane-to-power generation plant | WJHL | Tri-Cities News & Weather

Holston Electric's ethane-to-power generators not on-site, first generator removed. Anna Adams. Times News. January 3, 2025. Holston's ethane-to-power generators still not onsite | Local News | timesnews.net

Holston Electric’s ethane-to-power generators scheduled to be onsite next year. Anna Adams. Times News. April 25, 2025. Holston’s ethane-to-power generators scheduled to be onsite | Local News | timesnews.net

Ethane to Power: Planning, Design and Access Statement. ConocoPhillips. March 7, 2025. f4vko3v8am0q8t8n.pdf