Iberdrola Renewables Sells Entire Output of Regions Largest Biomass Energy Project

Friday, Oct 31, 2008

Iberdrola Renewables today announced that the Sacramento Municipal Utility District (SMUD) has purchased the entire output of a 55 megawatt (MW) biomass cogeneration plant under construction at a Tacoma, Wash., pulp and paper mill. IBERDROLA RENEWABLES announced in April it had acquired the output to expand its growing portfolio of clean and renewable resources for its utility customers.

The biomass plant will be owned by Simpson Tacoma Kraft Company. Simpson will generate power from a combined heat and power (cogeneration) process that consumes waste wood products to generate steam needed for power production as well as its manufacturing process. The power will leave the plant from a Tacoma Power interconnection where IBERDROLA RENEWABLES will then manage delivery into California. The first power from the plant is expected to be available in July 2009.

“This clean, renewable biomass energy will help SMUD reach its goal of meeting 23 percent of our customers’ energy needs with renewable sources by 2011,” said Steve Sorey, SMUD’s Manager of Energy Trading & Contracts. SMUD will receive enough renewable energy from the agreement to power about 38,000 homes.

Source: MarketWatch