Dover-based Chesapeake Utilities Corporation announced that the company commenced operation of its Eight Flags Energy Combined Heat and Power Plant on Amelia Island in Nassau County, Florida.
The plant began generating electricity in June and began producing steam in July.
Rayonier Performance Fibers, a subsidiary of Rayonier Advanced Materials, is buying the steam for use at its a pulp and paper mill.
The CHP plant generates approximately 20 MW of base load power, producing enough electricity to meet 50 percent of Amelia Island’s demand.
Florida Public Utilities Company (“FPU”) is buying the power for distribution to its retail electric customers on Amelia Island. Florida Public Utilities is a subsidiary of Chesapeake
“We’re happy to report that the Eight Flags Energy CHP Plant is officially in service, providing opportunities across our business units to deliver more value to our customers and shareholders,” said Michael P. CEO of Chesapeake Utilities Corporation. “FPU customers will benefit from reliable, environmentally friendly electricity in their homes and businesses and cost savings in the coming years. We’re thrilled that the plant is operational, and we look forward to the many benefits for customers, shareholders, and the Amelia Island community.”
The Eight Flags Energy CHP Plant operates with a Solar Turbines Titan 250 gas turbine generator set coupled with a Rentech heat recovery steam generator. CR Meyer led the construction of the facility, which employed nearly 100 workers. The plant’s operations also yielded several new, full-time jobs.
“The Eight Flags Energy CHP Plant project was well executed on all fronts,” added Jeffry M. Householder, President of Florida Public Utilities Company. “Our partners in construction spent approximately 115,000 hours to bring this plant to fruition on time and budget, all while operating under the most safe and reliable practices. With the additional steam generated by the new CHP plant, Rayonier Advanced Materials will gain greater operational flexibility for their production facility.”
The plant is expected to generate $3.7 million in margin (profit margin) in 2016, and $7.3 million in margin on an annual basis.
