One of the largest biomass-fuelled electric generating facilities

One of the largest biomass-fuelled electric generating facilities

Published on 15 Oct 2009

One of the largest biomass-fuelled electric facilities in the USA, capable of generating 100 MW.

ATLANTA – Southern Power, a subsidiary of Southern Company that acquires, builds, manages, and owns wholesale generation assets, is acquiring Nacogdoches Power LLC from American Renewables LLC and will move ahead with construction of the planned biomass power plant in Sacul, Texas.

Groundbreaking is expected in the northern hemisphere autumn of 2009 and commercial operation is projected for the summer of 2012. When completed, the project will be one of the largest biomass-fuelled electric generating facilities in the USA, capable of generating approximately 100 megawatts (MW)).

The plant's output is committed through a 20-year power purchase agreement with Austin Energy, the municipal utility owned by and serving Austin, the state capital of Texas.

President and CEO of Southern Power, Ronnie Bates, said: "This acquisition fits Southern Power's business strategy of expanding the business in the wholesale market through acquiring generating assets and building new units – for which the output is significantly covered by long-term bi-lateral contracts."

He added: "We have a reputation of helping our customers meet their energy needs in a cost-effective, reliable, and environmentally responsible manner, and we look forward to working with Austin Energy."

Renewable energy options

Acquiring the Nacogdoches project diversifies Southern Power's fuel mix, which aligns with Southern Company's overall goal of using a variety of fuels to ensure reliable and affordable electricity generation.

President, chairman, and CEO of Southern Company, David Ratcliffe, said: "Southern Power continually seeks appropriate opportunities that fit the business strategy and risk profile of the company. We are especially pleased that this project is consistent with our goal of pursuing cost-effective renewable energy options that allow us to continue to provide reliable, affordable, and cleaner electricity."

The plant, which will be built on 66.8 hectares, will be fuelled with biomass materials, including forest residue from the surrounding areas, wood processing residues, and clean municipal wood waste. The project will require approximately a 907,000 tonnes of fuel annually, which is planned to be procured within a 120 kilometre radius of the project site.

Corporate information

American Renewables develops, builds and operates clean energy facilities that utilise biomass materials as fuel. It brings together the successful track records and project development, operations, energy investment, and asset management expertise of its three partners: BayCorp Holdings, Energy Management Inc., and Tyr Energy.

Southern Power is among the largest wholesale energy providers in the Southeast, meeting the electricity needs of municipalities, electric co-operatives, and investor-owned utilities. The company owns and operates generating capacity of more than 7,500 MW, with facilities in Alabama, Florida, Georgia, and North Carolina, and has an additional 820 MW committed to construction in North Carolina and Texas.

With 4.4 million customers and more than 42,000 MW of generating capacity, Atlanta-based Southern Company (NYSE:SO) is an energy company serving the Southeast. It owns electric utilities in four states and a growing competitive generation company, along with fibre-optics and wireless communications.

The company says its brands are known for excellent customer service, high reliability, and retail electric prices that are below the national average. It is consistently listed among the top USA electric service providers in customer satisfaction by the American Customer Satisfaction Index (ACSI). More at www.southerncompany.com