Submitted by Suanne Z. Thamm
Reporter – News Analyst
September 20, 2014 2:49 p.m.
According to a September 19, 2014 news release available on the company website and broadcast on www.manufacturingnews.net the same day, big changes might be in store for Chesapeake Utilities, Florida Public Utilities, Rayonier Advanced Materials, and the city of Fernandina Beach. There is no new information on the Rayonier website or Florida Public Utilities’ website. Chesapeake Utilities has released the following news, presented below:
Chesapeake Utilities Corporation (NYSE: CPK) (“Chesapeake”) announced today that its subsidiary, Eight Flags Energy, LLC (“Eight Flags”), is pursuing the development and construction of a combined heat and power plant in Fernandina Beach on Amelia Island in Nassau County, Florida. The plant will be built on a site to be leased from Rayonier Performance Fibers, LLC (“Rayonier Performance Fibers”), a subsidiary of Rayonier Advanced Materials, Inc. (“Rayonier Advanced Materials”). The site is adjacent to a cellulose specialties plant that Rayonier Performance Fibers operates. The combined heat and power plant will generate steam that will be sold to Rayonier Performance Fibers, pursuant to an agreement executed by Eight Flags and Rayonier Performance Fibers, for use in the operation of Rayonier Performance Fibers’ plant. The combined heat and power plant also will produce approximately 20MW of base load power that will be sold to Chesapeake’s wholly-owned subsidiary, Florida Public Utilities Company (“FPU”), for distribution to its retail electric customers.
“This is an exciting project for our company because it is an example of what can be accomplished when two parties work together to find a way to develop an outcome that is greater than either could have accomplished alone. In this particular instance, we have coupled the communities’ desire for reliable, environmentally friendly electricity with Rayonier Performance Fibers’ need for steam to lower costs for both. This is a case where everyone truly wins,” said Michael P. McMasters, President and CEO of Chesapeake Utilities Corporation.
“Partnerships like this are not only great for business, but provide a significant benefit to our neighbors on Amelia Island through more reliable and economical electric service,” said Paul Boynton, Chairman, President and CEO of Rayonier Advanced Materials, Inc. “We’re proud to be part of a solution that offers additional operational flexibility to our plant while helping to provide reliable and cost-effective power to Amelia Island residents.”
“We are pleased to see this innovative project come together because it will provide so many benefits to FPU customers and the entire community. Our goals have always been to find ways to improve reliability to our Amelia Island customers and to lower fuel costs for all of our customers. This project helps us in getting closer to achieving those goals,” said Jeffry M. Householder, President of Florida Public Utilities Company.
Rayonier Advance Materials currently operates boilers at its Fernandina Beach site, which provide steam and generate electricity needed to operate its production facility. They currently sell the excess electricity it generates to FPU. The combined heat and power plant will provide a cost efficient supply of steam that will be sold to Rayonier Advanced Materials to help optimize its operations.
The plant will feature a Solar Turbines Titan 250 industrial gas turbine generator set, one of the original equipment manufacturer’s most powerful and efficient turbine packages. Rentech Boiler Systems will supply the heat recovery steam generator. FPU and Peninsula Pipeline Company, Chesapeake’s intrastate natural gas pipeline subsidiary, will transport natural gas through their distribution and transmission systems, ultimately delivering it to the plant.
The construction of the plant and the transactions between Eight Flags and Rayonier Advanced Materials are subject to various conditions, including obtaining necessary governmental approvals, regulatory and environmental permits and the parties’ completion and execution of various agreements. If all conditions are satisfied, construction of the plant is currently scheduled to commence in early 2015 with commercial operation expected to commence in July 2016.
About Chesapeake Utilities Corporation. Chesapeake Utilities Corporation is a diversified energy company engaged in natural gas distribution, transmission and marketing; electricity distribution; propane gas distribution and wholesale marketing; advanced information services; and other related services. Information about Chesapeake Utilities Corporation and the Chesapeake family of businesses is available at www.chpk.com.
About Florida Public Utilities Company . Florida Public Utilities Company is a wholly-owned subsidiary of Chesapeake Utilities Corporation. Headquartered in West Palm Beach, Florida, FPU distributes natural gas and propane and provides electric services to approximately 100,000 customers in markets throughout Florida. For more information, visit www.fpuc.com.
About Rayonier Advanced Materials, Inc. Rayonier Advanced Materials, Inc. is the leading global supplier of high-purity, cellulose specialties products, a natural polymer for the chemical industry. Working closely with its customers, the company engineers natural polymeric chemical chains to create dozens of customized high-purity performance fibers at its plants in Florida and Georgia. Rayonier Advanced Materials is consistently ranked among the nation’s top 50 exporters and delivers products to 79 ports around the world, serving customers in 20 countries across five continents. For more information, visit www.RayonierAM.com.
The Port Master Plan needs update in light of present and planned realities. Our City and County Commissioners and Governments need to educate themselves. This upcoming election should evaluate those that are knowledgeable and indicate what positions they hold, and those who know nothing and remain silent – or know something and remain silent. Time’s awasting…
Sounds nice and desirable, but do any of our local big business/govt entities notify the community in advance before rolling these major initiatives out? The port master plan, the coal ships, now this. Must be using the NFL’s public relations firm….
I believe this plan will to be replace bio mass energy production with natural gas. I think this may be a better for the environment. I would like to see more details, but as noted this must be approved by appropriate regulatory agencies.
Not sure what this has to do with the Port Master Plan.
Paul Boynton, Chairman, President and CEO of Rayonier who said ,“Partnerships like this are not only great for business, but provide a significant benefit to our neighbors on Amelia Island through more reliable and economical electric service,” ought to be tarred and feathered and driven out of town – unless this coal-fired power plant can be located next to his residence.
With this coal-fired mammoth, who needs the frequently installed gas line?
The plant is going to be a Natural Gas Co Generation Plant, not coal.
Len,
I know that FPU and Penisula’s long term goal for the natural gas pipeline was to add Rayonier to the distribution system after RockTenn was the first major customer and the one responsible for the business case to bring NG onto the Island. The press release is a bit awkwardly worded when it uses the word “ultimately delivering it to the plant”. One would think the intent would be to use NG from Day 1 as it would not make any business sense to build coal-fired boilers to generate the steam and then conver to NG.
Sorry, Port Master Plan has nothing to do with this one. Mr. Thamm will have to blame someone else.
Will our monthly bills be reduced and will our air quality be improved?
I’m the Sales and Marketing Director for FPU. Judith you raised two good questions. FPU continues to work toward lowering fuel cost and we pass those savings to our customers. We believe electricity generated from this plant will be competitive with even the most efficient source of generation throughout the region and because it will use natural gas, it will definitely be better for the environment.