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Affordable Energy Production from Renewable Fuel

Affordable Energy Production from Renewable Fuel. Presentation to: Logansport Municipal Utilities Board November 27 2012. Background. By 2030 annual net peak demand for power approaching 150 MW

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Affordable Energy Production from Renewable Fuel

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  1. Affordable Energy Production from Renewable Fuel Presentation to: Logansport Municipal Utilities Board November 27 2012

  2. Background • By 2030 annual net peak demand for power approaching 150 MW • The current 38.5 megawatt (MW) facility, cannot meet the basic demand levels of its service area • Environmental policies pose significant challenges for LMU to upgrade existing plant • Opportunities for generating lower-cost and cleaner electricity

  3. Study scope • Determine if energy can be produced from renewable fuels at a production cost in the range of 4.5 to 5.5 cents per kWhr

  4. What is this study about? • Independence / local control of LMU • No loss of LMU employment • Keep existing jobs within Logansport • Economic development for Logansport – new jobs!

  5. The do-nothing option • Loss of local jobs • Limitations to economic development • Higher energy costs to Logansport residents • No control

  6. New power plant concept • Produce energy at a cost of 4.5 to 5.5 cents per kWhr. • Capable of delivering a total installed generating capacity of 300 MW • Use “renewable” fuel from processed municipal solid waste as the primary source of fuel • Allow sufficient redundancy in operation so as not to affect ability to deliver power load requirements to its customers

  7. New power plant concept 2 – 150 MW Systems Environmental control Ancillary equipment Power plant fuel storage Rail access Fuel source production

  8. New power plant concept • Key to achieving energy cost target: • Fuel quality • Fuel supply • Ability to sell highly marketable renewable power

  9. Implementation • Approach: • No municipal bonding required • Low risk strategy for LMU • Schedule • Security of power sales contract

  10. Conclusion • The proposed power plant will: • Allow the LMU to meet its power demands and have an independent operation of its energy demand and supply • Ensure a stable competitive energy price

  11. Conclusion • The proposed power plant will: • Help retain needed jobs in the community • Be attractive to new business looking to relocate to Logansport • Generate direct and indirect economic impact to Logansport

  12. Next steps • Issue request for proposals • Answer questions from potential submitters • Develop evaluation criteria • Submission of proposals • Review proposals • Interview short list • Recommendation to LMU Board January 11 2013 February 4 2013

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