Gainesville Renewable Energy Center, United States of America

Gainesville Renewable Energy Center (GREC) is a 100MW biomass fuelled power plant being developed in Gainesville, Florida, US.

Massachusetts-based American Renewables are building the plant at an estimated cost of $500m. Construction of the GREC started in March 2011 and is expected to be completed in 2013.

The plant is expected to supply renewable energy to 70,000 households in the Gainesville region through a 30-year power purchase agreement signed with Gainesville Regional Utilities (GRU) in May 2009.

GREC will help in reducing the region's dependence on imported coal. It will be eligible for federal tax credits if completed by 2014, which will result in significant savings for GRU ratepayers.

During the construction phase of the plant, 1,100 direct and indirect jobs are expected to be generated. After completion, 44 permanent jobs will be generated to operate and maintain the plant.

An additional 650 indirect permanent jobs are also expected to be generated.

GREC project history

Gainesville's power needs are met by three power plants operated by Gainesville Regional Utilities (GRU).

Energy demand in the region is increasing at a faster rate than what the existing power plants can produce to cope with demand. In 2003, GRU felt the need to build an additional plant to meet the unmet demand by 2023.

Since GRU's existing plants are nearly 30 years old, improving the reliability of its power generation portfolio was also essential.

GRU searched for alternative options and considered the idea of building a 220MW coal-fired plant as an extension to the existing Deerhaven generating plant.

The idea was, however, dropped after opposition from locals. GRU later considered 28 options including wind and solar energy plants to solve the region's energy problems.

A biomass-fuelled plant was selected as it would be the most cost-effective and reliable renewable source of energy.

GRU invited companies to build a biomass fuelled power plant in the city and American Renewables was selected among the shortlisted companies.

Development of the biomass fuelled power plant

Development of GREC is based on the success of a similar 100MW biomass plant called Nacogdoches Power, developed by American Renewables in Texas. The project was approved by Florida's public service commission in June 2010. Site approvals and permits were received in December 2010.

The GREC will be located on a 131 acre parcel of land leased from the city of Gainesville.

Green energy design-builder Fagen has been appointed as the engineering, procurement and construction contractor.

Project finances provided by banks

A group of six banks, including Bank of Tokyo-Mitsubishi UFJ, Natixis, Rabobank Nederland, ING Capital, Crédit Agricole and Société Générale are providing the project with non-recourse debt financing. Energy Management, BayCorp Holdings and Tyr Energy are providing equity finance.

Gainesville Renewable Energy Center plant details

The plant will feature a wood fuel handling system supplied by Wolf Material Handling to process the biomass fuel received from various sources. The fuel is received at the wood yard in chipped form.

It is screened, blended and stored at the yard. It will be continuously supplied from the yard to the plant's boiler through a conveyor.

A state-of-the-art bubbling fluidised bed boiler supplied by Metso Power will burn the biomass fuel at the plant. The boiler has a highly efficient design which minimises emissions.

The steam generated by the boiler will be passed through a condensing steam turbine generator supplied by Siemens to generate electricity. An evaporative cooling tower and other equipment are also part of the plant.

Metso is also supplying the automation system for the facility. Operations and maintenance of the plant will be carried out by NAES.

GREC will require nearly one million tons of biomass fuel annually for its operations. The fuel will be sourced from within a 75-mile radius of the site. The region in which the plant is being built includes 77 million acres of forest. The forest biomass from this region including tree tops, logging residues from commercial tree harvest and land clearing will be procured.

Urban wood in the form of municipal brush, pallets and waste from tree clearings and tree surgeons will also be sourced. The plant will also use mill residues such as wood chips, saw dust and shavings.

BioResource Management, a local Gainesville company, will be responsible for the fuel procurement.

In September 2010, a wood supply agreement was signed with Wood Resource Recovery to supply about half of the wood required by the plant. During the construction phase, GREC will sign additional fuel supply contracts.

Local environmental impact

GREC will use advanced emission control equipment to reduce its environmental impact. The plant will help in achieving effective utilisation of the waste biomass generated in the timber region of Gainesville.

These materials are currently burned in the open, sent to landfill or left to decay resulting in the release of greenhouse gases. Construction of the plant will significantly reduce the particulate matter and dioxins released by such open burning.