Chesapeake Utilities Corporation celebrates first combined heat and power plant operation

Submitted by Suanne Z. Thamm
Reporter – News Analyst
September 9, 2016 3:00 a.m.

A steady stream of invited guests entered the Rayonier Advanced Materials complex on Gum Street late in the afternoon on September 6, 2016 to celebrate and congratulate those who made possible the construction and operation of Eight Flags Energy, Chesapeake Utilities Corporation’s first combined heat and power plant (CHP).

An overflow crowd gathered in an air-conditioned tent near the new facility to meet and greet representatives of industry and government responsible for bringing the ambitious project to fruition.

Kevin Webber, Vice President for Business Development and Gas Operations welcomed guests and acknowledged officials representing the state of Florida, the Florida Department of Environmental Protection (FDEP), Nassau County, the City of Fernandina Beach and the Public Service Commission.

Florida Public Utilities President Jeff Householder stressed that reliability of electrical power on the island has been greatly increased with the CHP plan, in effect creating a micro grid on the island. The plant was built atop 726 pilings and is elevated ten feet. It will produce enough power to supply the island during a storm without worry of line failure to the mainland.

Chesapeake Utilities President and CEO Michael P. McMasters in addressing the audience said, “We’re excited to launch the Company’s first CHP plant as we continue to expand our footprint and develop smart energy offerings, further diversifying our business. This clean, highly-efficient, forward-thinking project is an example of our employees’ commitment to developing effective ways to grow strategically while continuing to deliver value to our employees, customers, investors and the communities we serve.”

Paul G. Boynton, Chairman, President and Chief Executive Officer of Rayonier Advanced Materials also delivered brief congratulatory remarks. He said that Rayonier, Chesapeake Utilities and Florida Public Utilities had worked really hard together to do something to benefit the entire community. He stressed that CA McDonald, Rayonier’s local plant manager always puts safety first and always delivers.

Barbara Stanley, Vice President for Power Generation of Solar Turbines, the company that provided the CHP plant’s turbine, also praised the good working relationships among business and government officials allowing the parties to construct a plant that will provide electrical grid stability, good economic value and an environmentally friendly project. She added that her company’s industrial gas turbines have been functioning for over 60 years.

State Senator Aaron Bean called the CHP plant a big milestone for Fernandina Beach, Nassau County and Florida, noting a total investment of $40M in the project. He said that five full-time employees each earning in excess of $70K per year will work at the natural gas powered facility, which he termed “”one of the most energy efficient plants in the nation.” He added that the operation will generate $800K in property taxes.

Fernandina Beach Mayor John A. Miller said that the CHP plant represents the most important advancement during his tenure in office. He said that the plant’s ability to provide uninterrupted power to local residents “will make lots of us sleep better at night.” He praised the resulting reduction of carbon dioxide emissions as well. He concluded by paying tribute to Rayonier Advanced Materials, which he termed “the spinal cord of our town.”

The Eight Flags Energy Plant generates approximately 20 MW of base load power, producing enough electricity to meet 50 percent of Amelia Island’s average demand.

“This plant is one of the most energy-efficient cogeneration power plants in the United States, with a target efficiency of 78 percent,” added Jeffry M. Householder, President of Florida Utilities Company. “We are continually looking for new ways to increase efficiencies, provide cost savings and add value to our customers and the communities we serve. I believe it’s that commitment to Rayonier and all our customers that has resulted in the development of this state-of-the-art plant.”

Following the 45-minute opening ceremony, guests were permitted to tour the new facility.

Located in Fernandina Beach, FL, the CHP plant is powered by natural gas provided by Florida Public Utilities Company and Peninsula Pipeline Company. It produces three energy sources: electricity, steam and heated water. Rayonier Advanced Materials will purchase the steam and heated water for use in its cellulose specialties production facility, while Florida Public Utilities will purchase the electricity for distribution to its local retail customers, who will reap both cost-savings and increased reliability. The new CHP plant also provides environmental benefits, including reduced greenhouse gas emissions and dramatically lower water use than conventional utility power plants.

Editor’s Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne’s many contributions to the Fernandina Observer.