Transcript Biomass Power Plant, presented by John Cox

BIOMASS POWER PLANT
Jo-Carroll Energy, Inc. (NFP)
MISSION STATEMENT
“JO-CARROLL ENERGY EXISTS
TO ENHANCE THE
QUALITY OF LIFE
FOR OUR MEMBERS”
JO-CARROLL ENERGY, INC. (NFP)
• Electric, natural gas and broadband
distribution cooperative
• Prides itself on maintaining a strong, strategic
connection to the future
• Insure intimate relationship with its members
• Willing to study any and all opportunities that
might reasonably enhance the quality of life of
its members
JO-CARROLL ENERGY, INC. (NFP)
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Founded in 1939 with 60 members
26,000 electric and natural gas accounts
72 employees—100 megawatt electric load
Has installed communications backbone to
support SCADA (Supervisory Control and Data
Acquisition System) and AMI initiatives
• Organized Sand Prairie Wireless utilizing
communications backbone to bring internet
access to all within service territory as well as
others—all members of the cooperative
JO-CARROLL ENERGY, INC. (NFP)
• Employs an exceptionally well-educated and
appropriately experienced staff
• Requires forward-looking and somewhat
adventurous attitude
• Very inclined to accepting and managing risk
• Board of Directors that maintains a long term
perspective in oversight and direction of the
company
BIOMASS POWER PLANT
• 80 MEGAWATT plant
• Evolved from the need for cost effective
power for members for years to come
• Huge undertaking for a small cooperative
• Project has progressed as planned and is on
time per original projections
• Not without continued risk
BIOMASS POWER PLANT
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Still awaiting Illinois EPA Air Permit
Still in search of financing partner
Huge undertaking for a small cooperative
Project has progressed as planned and is on
time per original projections
• Not without continued risk
• Will assist in keeping costs of power down
BIOMASS POWER PLANT
• Studies showed that the best way to mitigate
potential long term rate volatility was to
construct a biomass generation facility
• Also considering an optional natural gas
peaking unit of up to 22 megawatts for
possible blackstart and peaking needs
• Support of staff and Board of Directors for
project led to hiring of consultants, etc.
KEY REASONS FOR PLANT
• Cost effective
* coal fired generation is near impossible
* lower capital cost than other options
• Environmentally significant and friendly
* Clean wood is carbon neutral fuel
* Additional emissions are minimal
* Strong local support for biomass generation
KEY REASONS FOR PLANT
• Economic Development
* 250-300 construction jobs created over three
year period
* 36 permanent workers
* managed timber, switch grass, corn stover harvests
creates multiple jobs
• Regulatory requirements
* State and federal requirements for renewable energy
generation
* Greenhouse gas standards require diversity
Construction and Operations
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60 acre construction site
2 miles north of Thomson on Highway 84
Additional option for 100 acres adjoining
Adjoins Danisco plant which will purchase
steam from the facility
• Upgrade of access road to 80,000 pound road
as well as turn lanes on Highway 84 will lead
to initial construction jobs
Construction and Operations
• Permits, etc. required and completed:
* Threatened and Endangered Species Survey
* Wetland Delineation
* Archeological Study
* Hydrology Study
* Local Wood Study
Construction and Operations
• Still need to be done:
* Midwest Independent Transmission
Operator (MISO) Project documentation
* National Pollution Discharge Elimination
System (NPDES) study
• Completing work on infrastructure plan and
deliverability issues
FINANCIAL ISSUES
• Current project construction cost-$290,150,000
• Construction to begin in 2011
• Startup target for late 2013 or early 2014
• Tax credits/grants are available to partner as
Jo-Carroll Energy is a not-for-profit,
tax exempt corporation
REMAINING CRITICAL RISKS
• Air Permit approval is by no means assured
• Jo-Carroll Energy cannot finance project alone
• Ongoing confusion with federal and state
regulatory agencies
• Serious harm done by recent USEPA “tailoring
rule” publication
• Lack of finality of energy policy, “cap and
trade” legislation
ADDITIONAL OPTIONS
• Construct 40 Megawatt plant instead
• Proceed with natural gas peaker generation
unit alone
• Other possibilities as the governmental
agencies adjust approach or legislative
proposals and ideas change
• Other economic development projects arise as
we always remain flexible
•QUESTIONS?