Procter & Gamble biomass CHP project moving forward

A $230 million combined-heat-and-power biomass project under construction in Albany, Georgia, is progressing, it’s most recent milestone being approval of a deal with the Albany-Dougherty Payroll Development Authority to exempt the project from local taxes for two years.

After that time, Albany Green Energy—a three-way partnership that includes Procter & Gamble, Constellation NewEnergy Inc. and Sterling Energy—will pay $375,000 in annual taxes, creating nearly $8 million in tax revenue over the life of the agreement.

The 50-MW capacity project, which will generate 42 MW for sale to Georgia power, will be constructed, owned and operated by Constellation NewEnergy, and supply steam to the Albany Procter & Gamble Paper Products Co., the company’s second-largest paper product plant.

The facility, which already utilizes an onsite biomass boiler for some of its steam requirements, may also provide steam to the nearby Marine Corps Logistics Base-Albany. The base already draws one-third of its energy from a landfill-gas project with Dougherty County and is currently in the process of expanding.

The project will benefit from the now-expired federal biomass production tax credit. According to documents filed with the Georgia Public Service Commission, AGE, working with P&G, began initial construction activities in December 2013 and has continuously worked on such construction efforts since.

According to the documents, Constellation has selected DCO Energy LLC as its preferred engineering, procurement and construction contractor to finalize construction of the facility, subject to the execution of a binding engineering, procurement and construction contract.

The project is estimated to create 25 to 30 full-time jobs and an average of 190 construction jobs over its construction period, peaking at about 575.

Completion is slated for June 2017.