Eight Flags Energy, Chesapeake’s latest CHP baseload power unit, is now in full operation and produces enough electricity to meet half of Amalia Island’s demand. All steam output is sold to Rayonier for use in its nearby pulp and paper mill. The CHP is expected to generate $3.7 million in margin in 2016, and $7.3 million on an annual basis.
Providing flexible onsite steam for Rayonier
First electricity was produced in mid-June and by late July the CHP started producing steam – all of which is bought by Rayonier Performance Fibers for use in its adjacent pulp and paper mill. In fact, the site where the power plant is built on has been leased by Rayonier.
Prior to the start-up of the Eight Flags CHP, Rayonier had been operating boilers at its Fernandina Beach site, which provided steam and generate electricity for its production facility, and sold the excess electricity to Florida Public Utilities Company (FPU)
Now, FPU is purchasing electricity from the new CHP for distribution to retail customers on Amelia Island, located off Florida’s north-western coast.
Project executed on time and on budget
Construction works were led by CR Meyer and took approximately 115,000 hours, with nearly 100 workers employed. The 20 MW power plant operates with a Solar Turbines Titan 250 gas turbine genset coupled with a Rentech HRSG.
“Well executed on all fronts," is what FPU president Jeffry M. Householder called the Eight Flags CHP project, stressing the utility’s construction partners did execute the project “on time and on budget” while operating under safe and reliable practices. “With the steam generated by the new cogeneration plant, Rayonier Advanced Materials will gain greater operational flexibility for their production facility," he added.
Headquartered in West Palm Beach, FPU is a wholly-owned subsidiary of Chesapeake Utilities Corp. It supplies natural and propane and provides electricity to approximately 100,000 customers in markets throughout Florida.