Plan: waste-to-energy power plant
Published: January 12, 2012
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The waste-to-energy project proposed by Alpine Energy Group has been revised several times since 2009 when the company was chosen to sell power to the V.I. Water and Power Authority.
The current plan is to build two refuse-derived fuel processing facilities, one on St. Thomas and one on St. Croix. A waste-to-energy power plant is planned for St. Croix only.
The only source of fuel for the power plant will be solid waste provided by the V.I. Waste Management Authority, no petroleum coke will be burned to make energy.
The Waste Management Authority has entered into contracts with Alpine to pay the waste-to-energy company to take V.I. garbage. The garbage will then be turned into refuse-derived fuel pellets which will fuel the St. Croix power plant.
Waste Management Authority has guaranteed Alpine a minimum of 400 tons of municipal household solid waste per day - almost all of the waste the territory currently produces.
WAPA has signed a power purchase agreement with Alpine guaranteeing that the utility will buy at least 16.5 megawatts of electricity that Alpine produces. Alpine's St. Croix power plant will be able to produce 20 megawatts of power.
WAPA would buy the power from Alpine at 10 to 14 cents per kilowatt hour, depending on the time of day the power is being produced. WAPA customers currently pay about 42 cents per kilowatt hour.
According to Alpine, the agreement will mean 20 percent of the territory's power will come from the waste-to-energy plant.
The lease that is being considered by the Senate will allow Alpine to build the St. Thomas refuse-derived fuel processing facility on six acres near the Bovoni Landfill.
The lease agreement for the Bovoni land is for 30 years, with two 10-year options for renewal. The base rent for the construction period is $1,487.50 monthly, and after that, the initial base rent is $35,700 annually, with an adjustment based on the Consumer Price Index after five years, and annual adjustments after that.
The St. Croix processing facility and power plant will be located on 20 acres at the St. Croix Renaissance Park.
According to Alpine officials, construction on the project can begin about four months after legislative approvals.
Alpine officials say the deal will save WAPA about $40 million a year, based on oil prices of $130 a barrel. As of presstime, the Brent Crude Oil index listed oil at $113 per barrel.
- Contact reporter Aldeth Lewin at 714-9111 or email alewin@dailynews.vi.
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