Chesapeake Utilities Corp. (NYSE: CPK) broke ground on a $40 million combined heat and power plant in Florida.
The 20 MW Eight Flags’ CHP plant will be built on a site adjacent to a cellulose specialties production facility. The plant is expected to be operational in mid-2016. Chesapeake subsidiary Florida Public Utilities Co. will buy the electricity output under a 20-year power purchase agreement.
The Florida Public Service Commission also approved the extension of an existing PPA between FPU and Rayonier Performance Fibers, which owns the cellulose facility. Boilers at the facility provide steam and generate electricity, of which the excess is sold to FPU. The original contract has been in place for two years, and the extension will add 14 more years, extending the contract from October 2022 to September 2036.
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