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Progress Energy Florida Signs Contract For Second Waste-Wood Plant

File image of a waste-wood biomass plant.
by Staff Writers
St. Petersburg FL (SPX) Dec 20, 2007
As part of its ongoing commitment to renewable energy and developing technologies, Progress Energy Florida (PEF) has signed another contract with Biomass Gas and Electric LLC (BG and E) to purchase electricity from a second waste-wood biomass plant planned for Florida.

BG and E, based in Atlanta, Ga., plans to build a power plant in north or Central Florida that will use waste wood products -- such as yard trimmings, tree bark and wood knots from paper mills -- to create electricity. It would generate about 75 megawatts, or enough electricity to power 46,000 homes. The plant is expected to avoid the need to burn nearly 5 million tons of coal over the 20-year life of the contract.

It would be identical to BG and E's waste-wood plant announced in July. Progress Energy Florida agreed to buy the output of that plant as well.

The plant will use gasification to create electricity. Projected commercial operation is expected to begin in June 2011, about six months after the first waste-wood plant. In total, BG and E has four biomass power plants planned for construction in the next four years.

"Clean, renewable energy sources, such as this one, play a vital role in our balanced approach to managing Florida's growing energy needs," said Jeff Lyash, president and CEO of Progress Energy Florida. "This partnership continues our long history of supporting innovative technologies and promoting cost-effective, cleaner energy sources."

"We are very pleased to expand our relationship with Progress Energy Florida, providing clean and sustainable energy resources to assist with the state's future power needs." said Glenn Farris, president and CEO of Biomass Gas and Electric. "Through the leadership of companies like Progress Energy, the state of Florida continues to lead the Southeast -- and the nation -- in the promotion of clean, alternative energy for the production of electricity."

The contract will be filed for consideration with the Florida Public Service Commission (PSC). The company seeks PSC approval of the contract and certification of the proposed plant as a qualifying facility under Florida laws and regulations that encourage renewable energy.

"Hats off to both Progress Energy Florida and BG and E for investing in clean energy solutions that will further diversify Florida's fuel mix and improve upon Florida's economic well-being," said Jeremy Susac, director of the Florida Energy Office in the Florida Department of Environmental Protection.

In the past two years, Progress Energy has signed contracts to add nearly 300 megawatts of renewable energy to its system -- which is enough to power 170,000 homes. In July, the company issued a request for renewables in an effort to continue to expand its alternative-energy portfolio.

In May 2006, Progress Energy signed a contract to purchase the energy output (130 MW) from the nation's largest biomass plant to be built in Central Florida. The project, which will utilize environmentally friendly E-grass as its fuel source, will reduce carbon emissions by more than 20 million tons over the 25-year life of the contract when compared to coal.

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