Feb 18 2011
Cleantech Transit has provided added information on a 500 kW biomass power plant, which is operated and owned by Phoenix Energy in Merced in California. This plant is to obtain a use permit from Merced County and an Authority to construct permit on behalf of the San Joaquin Air Pollution Control District in the Central Valley in California.
Cleantech CEO, Alex Holtermann remarked that commercial operations of the plant would begin in the second quarter of 2011. On completion of the interconnection process, the plant could start selling power under a fixed price contract for a period of 15 years to California’s largest utilities. This would help the company to utilize the various incentives offered by the government such as carbon credits and also speed up the development of renewable energies in California State.
At present, the plant is undergoing the final stage of grid interconnection and is waiting for the final parallel test to the utility. After this the operator would commence a start up and a testing period. The total cost for the first plant would be around $2.5 million to $3 million and the debt funding was provided by the US Endowment for Forestry and Communities and the State of California. Phoenix Energy, the parent company had provided the equity for the project.
Cleantech Transit has chosen to invest in Phoenix Energy’s Biomass plant after recognizing the varied operational and economic benefits that would be gained.
Source: http://www.cleantechtransitinc.com