Biomass firm says second Florida 'E-grass' plant is possible

Biomass firm says second Florida 'E-grass' plant is possible

Boston (Platts)--6Jul2006

The chairman of Biomass Investment Group said Thursday his company hopes
that as soon as early next year Progress Energy Florida will sign a power
purchase agreement for another 130-MW plant to be fired by a biomass fuel
called "E-grass."

Allen Sharpe said that the 25-year PPA that Progress Energy Florida
signed this spring for a 130-MW plant that Gulf Breeze, Florida-based BIG is
developing in central Florida includes a provision that gives the utility the
option of entering into another PPA for the output of a second E-grass-fired
plant that BIG would develop.

E-grass is a fast-growing, bamboo-like grass grown and harvested
specifically for use as a renewable fuel. Discussions about a second plant and
PPA could begin as soon as early 2007, once BIG has started construction of
the first plant, said Sharpe, adding his hope is that the second plant's
development would follow that of the first by "about a year."

Progress Energy Florida spokeswoman Cherie Jacobs said Progress Energy
Florida has not committed to signing a second PPA, but wants to track the
initial development of the first plant.

Progress, the second-largest utility in Florida, has been seeking to
expand the renewable portion of its generation portfolio, she said.

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