Georgia Utility Signs Purchase Agreement for 25 Megawatts of Biomass Power

April 30, 2007

Georgia Power has signed a power purchase agreement with Greenleaf Environmental Solutions, LLC, a subsidiary of Biomass Gas & Electric, LLC, in Atlanta, for 25 megawatts (MW) of renewable generating capacity beginning September 2009. The utility announced the agreement, which runs for 20 years, on April 24.

Greenleaf will build a biomass-fueled, power-generating, qualifying facility in Forsyth County, Georgia. It will be located adjacent to an existing construction and demolition landfill operated by Greenleaf Recycling, LLC, in Cummins, Georgia. The landfill will supply 800 tons per day of demolition wood to a biomass gasifier and power generator. The technology for the biomass gasifier was developed in the 1990s with partial support from the U.S. Department of Energy. Biomass Gas & Electric publishes a project description on its Web site.

In the event that the landfill cannot supply enough biomass, Greenleaf will obtain other supplies of wood chips or other biomass materials from nearby. The company has also installed a natural gas pipeline to run the power station on natural gas in the event of a shortfall in biomass supplies.

The agreement almost doubles renewable power capacity in Georgia and comes as a result of the utility adding flexibility to its approach to contracting with renewable power generators. Prior to 2005, the utility had less than 1 MW of renewable capacity. With the additional 25 MW in the newly signed agreement, Georgia Power now has more than 55 MW under contract. According to the utility, its agreement with Biomass Gas & Electric offers components of both power purchase agreements and qualifying facility contracts. Georgia Power, Biomass Gas & Electric, and the Georgia Public Service Commission worked together to hammer out the terms of the contract.

Georgia Power is the largest subsidiary of Southern Company, and serves 2.3 million customers in all but four of Georgia's 159 counties.

For more information, see the Georgia Power April 24 press release.

Source: April 27 article in SNL Energy Renewable Energy Week