Southern Power to take over Sacul biomass plant

A proposed 100 megawatt biomass plant to be built in East Texas that will provide power to Austin will now have new owners based in Atlanta, Ga.

Southern Power, a subsidiary of Southern Company, acquired Nacogdoches Power, LLC from its parent company, American Renewables, LLC. The purchase amount was not disclosed.

The acquisition means that the biomass plant set to be constructed on 165 acres in Sacul is now under the banner of one of the largest energy companies in the nation.

“This acquisition is aligned with Southern Power’s overall strategy of developing and employing a variety of energy methods, such as renewable items, nuclear or coal, to provide affordable electricity,” said Valerie Hendrickson, media relations specialist for Southern Power.

Ground-breaking on the new plant is expected this fall, with the plant scheduled to be up and running by 2012.

In a report from the June 20, 2007 edition of the Cherokeean Herald, plant officials said that the biomass plant would create 200 new jobs, including 30 who would remain on site to run the plant and several hundred workers who would collect biomass materials and transport them to the plant.

The biomass plant is set to provide 100 megawatts of power, making it one of the largest biomass-fueled electric generating facilities in the U.S.

The project will require approximately one million tons of biomass fuel, planned to be acquired within 75 miles of the Sacul plant.

In August 2008, the city of Austin approved a $2.3 billion biomass power contract with Nacogdoches Power, LLC, to purchase power from the biomass plant, a factor which will not change under the new ownership.

Austin Energy will be the only company to purchase power from the plant for 20 years.

If the cost of purchasing power from the Sacul plant exceeds the $2.3 billion contract before the end of those 20 years, Austin Energy will have the option of ending the contract.

“We have a reputation of helping our customers meet their energy needs in a cost-effective, reliable and environmentally responsible manner, and we look forward to working with Austin Energy,” said Southern Power President and CEO Ronnie Bates.

Approximately one million tons of waste wood products per year would be converted into electricity, and a yield study has confirmed a firm supply until the year 2060, said plant officials.

Southern Power owns and operates more than 7,500 megawatts with facilities in Alabama, Florida, Georgia and North Carolina, with 820 megawatts committed to construction in Texas and North Carolina.