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Demolition costs start at $12M at NRG site

OBSERVER file photo City officials heard discussion on costs and possible reuse of the NRG site.

Total demolition costs for the former NRG Energy plant in Dunkirk are estimated to be $12 million with total abatement costs expected to be between $3 and $6 million. This is what came out of Bergmann Associates’ feasibility study of the site released to the public last week at the economic development meeting in the city.

In addition, a site remediation would cost about $20 million.

NRG, which shuttered the plant in 2016, remains the owner of the property. Bergman Associates from Buffalo was chosen in 2019 to take on the study, which looked at all facets of the project to determine at least three different ways for the city to move forward with the facility.

“Because of the challenges of this site, its going to require a politically feasible solution. … Our takeaway is to make this work we’re going have to have a lot of political will to throw dollars at this,” said Michael N’dolo, director of economic development for the MRB Group.

What the study found was a number of concerns many already knew existed. They include: potential on-site surface, subsurface and groundwater contamination; potential asbestos and lead containing materials; presence of active and inactive underground and aboveground storage tanks and the presence of coal ash lagoons on site.

While there are several positives to the site such as harbor and barge access, CSX rail going to it as well as a nearby state Interstate there are some negatives. The biggest being the National Grid switchyard located in the center.

Three things that definitely won’t happen at the plant, according to analysis, is repowering, offshore wind and microgrid development. Most of these lack political will and funding.

The presentation given did share possibilities of what could be included as alternatives. Public open space, recreation, housing development and mixed use development were options, though unlikely, however the alternatives with greatest feasibility would be industrial development, a data center or a battery storage facility.

“Overall in the region there’s been a loss of jobs in the last five years, but there continues to be a strong manufacturing base,” N’dolo said. “What’s unique about the county is there is still a very strong manufacturing base to it.”

A Phase 2 Environmental Site Assessment was recommended by the group to delve deeper into the property and would cost an additional $110,000.

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