Exelon subsidiary Constellation and LA Sanitation have commenced the construction of a 25MW biogas-fuelled cogeneration plant in Los Angeles, US.
Constellation, along with its affiliate Exelon Generation, will build and operate the cogeneration facility for 20 years.
The deal also includes an option to extend the agreement for two additional five-year terms.
The steam and electricity being produced at the facility will be used for the LA Sanitation’s Hyperion water reclamation plant.
Scheduled to become operational by the end of 2016, the cogeneration facility is expected to produce around 173 million kilowatt-hours of electricity per year.
It can also generate around 70,000lb of steam per hour by using the methane captured through Hyperion’s sewage treatment process.
LA Sanitation director Enrique Zaldivar said: "Keeping our commitment means continually improving and finding innovative new ways to meet the sustainability goals that Mayor Garcetti has set for the entire city."
Constellation distributed energy senior vice-president said: "Constellation is proud to work with City of Los Angeles and LA Sanitation to develop and operate a cogeneration plant for the Hyperion facility that will help the community move toward its economic and environmental goals.
"Biogas-fuelled cogeneration offers wastewater treatment facilities a cost-efficient, sustainable, and resilient energy source that is highly effective at reducing methane and carbon dioxide emissions."
According to LA Sanitation, the cogeneration facility is expected to curb the release of around 100,000 metric tons of carbon dioxide each year.
Currently, Constellation has around 300MW of assets in operation or under development across the US.