Why Biomass is the Right Choice
Meeting Gainesville's future energy needs
The bulk of Gainesville's energy is produced at two GRU generation stations. These existing resources, though well-maintained, are aging. The biomass plant will help ensure that the community is prepared as older generation units are retired.
Fuel Diversification & Carbon Legislation
Coal and natural gas are GRU's major fuel sources, and prices on these fossil fuels are expected to increase. Continued reliance only on coal and natural gas puts GRU at risk due to proposed carbon and renewable portfolio regulations at the state and federal level.
The new biomass plant will be fueled by a plentiful, local supply of leftover clean woody waste generated by forestry for paper pulp, chip and saw timber, as well as urban wood waste. When GRU begins using this energy in late 2013, 21 percent of the utility’s fuel supply will be renewable. This will help Gainesville meet potential renewable portfolio standards requiring 20 percent renewable energy production.
Using this renewable, carbon-neutral energy source will also help Gainesville achieve the City's carbon-reduction goals, which are based on the Kyoto Protocol.
Smart Move to Save Customers Money
Bond rating agencies agree that a substantial investment in renewable energy sources is important to GRU maintaining its financial strength due to potential state and federal carbon regulations. Of the options currently available in Florida, biomass is the most cost effective long-term choice for GRU and customers.
Since American Renewables will build and own the plant, there will be no impact on customer bills until it comes online in late 2013. Then customers will see a small increase in the fuel adjustment, but early on in the contract the cost of producing the biomass energy is expected to become less expensive than fossil-fuel alternatives.
GRU has secured favorable pricing that is fixed for 30 years. The contract further protects customers from financial risks of outages and escalating maintenance and labor costs. GRU estimates this will save customers hundreds of millions of dollars.
