Rayonier, Florida Public Utilities Commemorate Renewable Energy Agreement

A renewable energy agreement between Rayonier Performance Fibers LLC, Jacksonville, Fla., USA, and the Florida Public Utilities Co. (FPUC) was commemorated this past week at Rayonier's Fernandina Beach, Fla., mill. Attendees included Adam H. Putnam, commissioner of the Florida Department of Agriculture and Consumer Services, and other dignitaries. Under the terms of the 10-year agreement approved by the Florida Public Service Commission in July, Rayonier will sell FPUC excess energy generated by a 22.5 MW turbine generator recently installed at the Fernandina mill.

Seven years after investing nearly $30 million in a biomass-fired power boiler at Fernandina, Rayonier installed the new turbine generator at a cost of roughly $25 million. "This project, which makes our Fernandina mill electrically self-sufficient, is the culmination of our renewable energy strategy for the performance fibers business," said Rayonier chairman, president, and CEO Paul Boynton. "Our mill in Jesup, Ga., now generates more than 99% of its own power needs, primarily from biomass."

FPUC president Jeff Householder noted that "our agreement with Rayonier not only provides a local source of renewable energy capable of powering more than 1,200 homes, but also lowers our energy costs. Those savings will be passed through to ratepayers in our service territory."

Commissioner Putnam, whose agency houses the State's Office of Energy, said that one of the mandates of his agency is "to foster innovation in energy development while cost-effectively diversifying our energy portfolio, and this contract does exactly that. It means FPUC will now be able to offer electricity from a renewable energy source, enhance system reliability, and save customers more than $1.2 million. I applaud Rayonier and FPUC for providing multiple benefits to ratepayers as a result of this agreement."

In the photo at right (l-r) are Boynton, Putnam, and Householder during the recent tour of the new turbine and generator at Rayonier's Fernandina Mill.

TAPPI
http://www.tappi.org/