Chapter 10. Other Generation Technologies

Introduction

Other, less prevalent generation technologies suitable for co-location with large electrical loads include biomass, coal, fuel cells, and hydroelectric power. While these options are generally less advanced or less economically competitive than the primary technologies discussed earlier, they still hold potential—particularly in niche applications where specific site conditions or energy needs align with their capabilities. Although these technologies are not explored in the same depth as the others, this chapter provides a brief overview of each to highlight their possible roles in specialized energy strategies.

Biomass Power Plants

Biomass power plants offer a renewable and dispatchable energy source that can be well-suited for co-located smaller loads or supplementing larger loads. From an environmental perspective, biomass is often considered carbon-neutral when feedstocks are sourced sustainably, as the carbon dioxide released during combustion is offset by the carbon absorbed during the growth of the biomass. These plants are capable of providing baseload or load-following power, making them compatible with the continuous energy demands of industrial operations. Additionally, they can utilize a variety of waste materials, including agricultural residues, forestry byproducts, and municipal solid waste, contributing to waste reduction and resource efficiency.

However, biomass plants face several challenges. Deployment schedules can be moderate to long due to the need to establish reliable feedstock supply chains and navigate permitting processes. Their feasibility is highly location-dependent, as proximity to biomass sources is essential to minimize transportation costs and emissions. Community acceptance can vary, with concerns often raised about air quality and odors. Policy support, such as renewable energy credits, plays a significant role in project viability, but such incentives can be uncertain. While capital costs are generally comparable to other thermal electric plants, the complexity and variability of fuel logistics can increase operational expenses.  As such, biomass capacity is predicted to stagnate; it accounted for 2.16% of electric generation in 2024, and is expected to fall to 1.96% in 2025, and fall again to 1.77% in 2026. [1]

Coal Power Plants

Coal-fired power plants are a mature and highly reliable technology capable of supporting very large, continuous loads. Their high-capacity factors and long operational lifespans make them attractive from a reliability standpoint. Coal plants are scalable and can deliver consistent output, which is beneficial for energy-intensive facilities requiring uninterrupted power.

Despite these strengths, coal power faces significant drawbacks. It is among the least environmentally sustainable options due to high emissions and other pollutants. While carbon capture and storage (CCS) technologies offer some mitigation potential, they remain costly and are not widely implemented. Coal plants also have long deployment timelines, driven by extensive permitting, environmental impact assessments, and construction requirements. Community opposition is common, often centered on pollution from gas emissions, water contamination, and coal combustion residuals (ash solids). Policy risks are substantial, as regulatory pressures and financial divestment from fossil fuels continue to grow. Although coal was economically competitive in the past, the total cost of ownership has increased significantly with rising coal prices and when environmental compliance and potential carbon pricing are factored in.  Figure 10.3 highlights the decline in coal electric production and the rise in coal prices.[2] Recent policy in the OBBBA has relaxed regulation and incentivized coal use, including Executive Orders, such as EO14241 [3].  This may slow the decline of coal, but new investments are looking at a longer strategy.

Fuel Cells

Fuel cell technology presents a promising option for co-located power generation, particularly due to its high efficiency and low emissions profile.  There are a number of different fuel cell technologies, and they can be made to operate on fuels such as hydrogen, methanol, ammonia, or natural gas.  When configured for combined heat and power (CHP), fuel cells can achieve efficiencies exceeding 60%, making them attractive for industrial applications that can utilize both electricity and thermal energy. Emissions are minimal, especially when hydrogen or biogas is used as the fuel source. Fuel cells are modular and scalable, allowing for flexible deployment close to the load, which reduces transmission losses and enhances energy security.

Nonetheless, fuel cells face several hurdles. While deployment timelines are generally shorter than those of large thermal plants, they depend heavily on the availability of suitable fuel infrastructure.  For low temperature fuel cells, hydrogen supply chains are still underdeveloped.  For high temperature fuel cells, the consumption of natural gas can undermine environmental benefits unless paired with carbon capture. The technology is still emerging at large scales, and long-term reliability data is limited. Capital and maintenance costs remain high, although ongoing technological advancements are driving prices down. Policy support for hydrogen and fuel cell technologies is evolving, and the availability of incentives can vary significantly by region.

Hydroelectric Power

Hydroelectric power is a well-established and highly reliable source of electricity, offering low operating costs and long asset lifespans. It provides stable baseload power and excellent ramping capabilities, which can be valuable for supporting large, co-located loads. From an environmental standpoint, hydroelectric generation produces no direct emissions and can contribute to grid stability and water resource management.

However, hydroelectric projects are characterized by very long deployment schedules due to the complexity of permitting, environmental reviews, and construction. Their feasibility is highly dependent on geographic and hydrological conditions, limiting their applicability to regions with suitable topography and water availability. Community acceptance can be mixed, as large hydro projects may lead to ecological disruption, displacement of communities, and impacts on cultural sites. Policy risks include evolving environmental regulations and water rights issues, which can introduce uncertainty. While the initial capital investment is high, hydroelectric plants offer favorable long-term economics due to their durability and low operational costs.

References

[1] E. Krueger, “EIA: July STEO Predicts Biomass Power Capacity Will be Unchanged in 2025, 2026”, Biomass Magazine, July 10, 2025.  [Online] Available: https://biomassmagazine.com/articles/eia-july-steo-predicts-biomass-power-capacity-will-be-unchanged-in-2025-2026, [Accessed 15 Sept 2025].

[2] U.S. Energy Information Administration, “Short-Term Energy Outlook Data Browser,” Data Base updated 7 October 2025.  [Online] Available: https://www.eia.gov/outlooks/steo/data/browser/, [Accessed 15 Sept 2025].

[3] D. Trump, “Reinvigorating America’s Beautiful Clean Coal Industry and Amending Executive Order 14241”, April 8, 2025, [Online] Available: https://www.whitehouse.gov/presidential-actions/2025/04/reinvigorating-americas-beautiful-clean-coal-industry-and-amending-executive-order-14241/, [Accessed 22 Sept 2025].