The Procter & Gamble Co. and Constellation, a unit of Exelon Corp., will develop an up to 50 MW biomass power plant that will help run one of P&G’s largest U.S. facilities.
Constellation will build, own and operate the $200 million cogeneration plant, which will supply steam to P&G’s Albany, Ga., paper manufacturing facility and generate electricity for the local utility, Georgia Power.
P&G has set a goal of obtaining 30 percent of its total energy from renewable energy sources by 2020.
For more than 30 years, the Albany facility has successfully used a smaller onsite biomass boiler to convert wood scraps into renewable steam, providing about 30 percent of the total energy. The new facility will replace P&G’s aging boiler with a highly efficient combined heat and power biomass unit. Incoming biomass will provide 100 percent of the steam, and up to 60-70 percent of the total energy used to maufacture Bounty paper towels and Charmin toilet tissue.
The facility is Constellation’s newest project in its active and growing distributed energy business, which has more than 300 MW of assets in operation or under development.
Georgia Power’s purchase of energy from Constellation, at or below Georgia Power’s avoided cost, is part of the company’s multifaceted strategy to encourage and cultivate renewable energy sources in Georgia and was made possible under a program developed in coordination with and approved by the Georgia Public Service Commission. Constellation is currently under contract to sell 42 MW of capacity and energy from the 50 MW facility to Georgia Power.
The project also included collaboration with the Albany-Dougherty Payroll Development Authority, local city, county and state leaders, including leadership and ongoing support from the Georgia Public Service Commission, as well as energy companies. DCO Energy will hold a minority stake in the project and provide engineering, procurement and construction services for the project. Constellation’s affiliate, Exelon Generation, will operate and maintain the plant. Sterling Energy Assets worked with Constellation to develop the project.
Construction activities have already begun on the site with the plant scheduled to begin commercial operation in June 2017. Construction is expected to create up to 500 new jobs over the next two years, with an additional 50 to 70 permanent local jobs for ongoing operations once the plant is built.