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Southern Company’s 100 MW Biomass Plant Is Online

July 18, 2012

With a heat wave in full swing and the air conditioners running overtime to keep its residence cool, electricity in Texas is a valuable commodity. Fortunately the state is getting an additional 100 megawatts (MW) today as Southern Company (SO :NYSE) brought its biomass plant in northeast Texas online.

Southern Company invested approximately $500 million into theNacogdoches Generating Facility. To generate electricity, the plant will burn non-saleable wood on its 165-acre tract. The original plant project, acquired from American Renewables LLC in October 2009, began construction in November 2009.

Austin Energy is purchasing the electricity generated from the plant under a 20-year power purchase agreement.

The need for more electricity in Texas is real as the Electric Reliability Council of Texas is consistently asking people to regulate their energy usage.

And as states like New Jersey and California focus on solar and other renewable energy formats, Texas is looking at many different ways to generate electricity.

Siemens (SI :NYSE) announced today that they awarded a contract for a 758 MW “flex-plant” that will host 2 gas turbines and 1 steam turbine. Bechtel will help build the $300 million plant that will use natural gas to reduce its CO2 emissions. Panda Temple Power LLC is purchasing the plant.

Shares of Southern Company were up 0.08 percent while shares of Siemens faired slightly better with a 0.84 percent increase.

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