Posted by MothMan Quite right. It was a steam generation plant, fueled by coal. As this activity produced no small amount of pollution, the concept was to have a central plant service a section of the city, rather then have many businesses burn coal to produce their own heat. As such, these plants were situated on the edge of town.
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Steam plants were in fact quite common in many places. There was one in my hometown of Portland, Oregon, which closed in the early 1980's. However, what made it different was that it used sawdust as fuel rather than coal or oil.