Chesapeake Utilities Corporation Commences Operation of Eight Flags Energy combined heat and power Plant

Source: PRNewswire




Chesapeake Utilities Corporation (NYSE: CPK) ("Chesapeake Utilities") announced today that the Company commenced operation of its Eight Flags Energy Combined Heat and Power ("CHP") Plant on Amelia Island in Nassau County, Florida.


AMELIA ISLAND, Fla., /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK) ("Chesapeake Utilities") announced today that the Company commenced operation of its Eight Flags Energy Combined Heat and Power ("CHP") Plant on Amelia Island in Nassau County, Florida.

The CHP plant began generating electricity in June and began producing steam in July. Rayonier Performance Fibers ("Rayonier"), a subsidiary of Rayonier Advanced Materials, is buying the steam for use in its cellulose specialties production facility, a pulp and paper mill.  Capturing the thermal energy improves overall efficiency, generates savings and provides environmental benefits.




The CHP plant generates approximately 20 MW of base load power, producing enough electricity to meet 50 percent of Amelia Island's demand.  Florida Public Utilities Company ("FPU") is buying the power for distribution to its electric retail customers on Amelia Island.

"We're happy to report that the Eight Flags Energy CHP Plant is officially in service, providing opportunities across our business units to deliver more value to our customers and shareholders," said Michael P. McMasters, President and Chief Executive Officer of Chesapeake Utilities Corporation. "FPU customers will benefit from reliable, environmentally friendly electricity in their homes and businesses and cost savings in the coming years. We're thrilled that the plant is operational, and we look forward to the many benefits for customers, shareholders, and the Amelia Island community."

The Eight Flags Energy CHP Plant operates with a Solar Turbines Titan 250 gas turbine generator set coupled with a Rentech heat recovery steam generator. CR Meyer led the construction of the facility, which took approximately 115,000 hours and employed nearly 100 workers. The plant's operations also yielded several new, full-time jobs.

"The Eight Flags Energy CHP Plant project was well executed on all fronts," added Jeffry M. Householder, President of Florida Public Utilities Company. "Our partners in construction spent approximately 115,000 hours to bring this plant to fruition on time and on budget, all while operating under the most safe and reliable practices.  With the additional steam generated by the new CHP plant, Rayonier Advanced Materials will gain greater operational flexibility for their production facility."

The plant is expected to generate $3.7 million in margin in 2016, and $7.3 million in margin on an annual basis. 

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