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Biomass officials provide details
Amid criticism on the manner and speed in which the Austin city council approved a 20-year-purchase power agreement between Austin Energy and Nacogdoches Power LLC, questions on how the future East Texas biomass facility plans to operate have now surfaced. Full Story
Comments
By C Michael Lucas
September 7, 2008 8:47 AM | Link to this
Biomass plant article- The contract with Austin Energy prohibits the use of natural gas to qualify for its purchases of the generated electricity. Anyone “permitting” a plant with an economic life of 40 years , and a contact of only 20 years would be foolish not to have as much potential flexibility of fuel supply as possible for the 40 year life of the plant.And, would probably not be able to obtain financing without this flexibility, given the current turmoil in the credit markets. The risk of having enough wood waste is one Nacogdoches Power LLC is obviously willing to assume based on their due diligence.