Arizona's Largest Renewable Energy Plant
Commences Commercial Operations; SRP, APS Customers Receive
New Biomass Energy
Jun 10, 2008 - Prime Newswire
Arizona's largest renewable energy facility
to date -- a wood-fired biomass energy plant located near
Snowflake, Ariz. -- today began providing commercial electricity
to Arizona Public Service (APS) and Salt River Project (SRP)
customers. Owned and operated by Renegy Holdings, Inc. (Nasdaq:RNGY),
the 24-megawatt (MW) plant will provide renewable energy
to more than 9,000 Arizona homes.
The Snowflake White Mountain Biomass Power
Plant is generating electricity through a wood-burning boiler
using forest thinning (wood-waste material from the area's
forest industries) and waste recycled paper fibers from
an existing newsprint paper mill located adjacent to the
Renegy Chairman and CEO Bob Worsley stated,
"We are very pleased to bring on line the largest biomass
power generation facility in the state of Arizona, and to
begin supplying clean, renewable power to APS and SRP. The
commercial operation of our Snowflake plant is a significant
milestone for our company, and marks the first of many more
biomass plants we plan to own and operate as we seek to
rapidly grow our portfolio of renewable energy assets."
"This project not only increases the renewable
energy that SRP is able to supply to our customers, but
it also responds to the state's Healthy Forest Initiative,"
said Richard Hayslip, SRP's Associate General Manager.
Don Brandt, APS President and CEO said, "APS
is aggressively providing renewable energy to our customers.
With the addition of the Snowflake biomass plant and the
soon-to-be-built Solana Generating Station, APS' renewable
energy portfolio will reach 420 MW -- enough to power more
than 133,000 homes."
Each utility has signed separate long-term
purchase power agreements with Renegy to secure the entire
electrical output of the plant.
At least 75 percent of the Snowflake plant's
production will be generated by forest-thinning efforts
occurring on U.S. forest lands surrounding the communities
of Arizona's White Mountains. The thinning efforts are in
support of the Healthy Forest Initiative, a 2003 federal
law enacted following the Rodeo-Chediski fire. The law was
designed to help protect forest lands against catastrophic
fires by focusing on responsible clearing of dense undergrowth
and brush in critical areas adjacent to private homes and
The remaining 25 percent of the plant's energy
output will be generated from unusable, recycled paper fibers
discarded by the Catalyst Paper Corp. mill. The mill produces
250 bone-dry tons of unusable paper fiber each day. Prior
to being consumed by the Snowflake biomass plant for the
production of electricity, the mill's waste material was
stored in a nearby landfill.
Already, every APS customer receives a portion
of their energy from renewable sources, including wind,
concentrating solar power, photovoltaic solar power and
geothermal. APS also offers a Green Choice program, which
gives customers the opportunity to purchase additional renewable
energy for only 1 cent per kilowatt hour. More information
on APS' renewable programs, including Green Choice, is available
The commencement of commercial operation at
the Snowflake plant marks SRP's entry into the biomass power
generation market and will be the newest addition to SRP's
EarthWise Energy Program, which consists of 529 megawatts
of renewable energy. SRP's EarthWise Energy Program is electricity
generated from clean energy sources such as solar, landfill
gas, hydro (including low-impact hydro), wind, geothermal
and now biomass. SRP customers can participate in SRP's
EarthWise Energy Program by paying a small premium on their
monthly electric bill to support the continued development
of clean energy for future generations. For more information,
Phoenix-based Salt River Project is the largest
provider of power and water to the greater Phoenix metropolitan
area with more than 925,000 electricity customers.
APS, Arizona's largest and longest-serving
electricity utility, serves about 1.1 million customers
in 11 of the state's 15 counties. With headquarters in Phoenix,
APS is the largest subsidiary of Pinnacle West Capital Corporation
Renegy, based in Tempe, Arizona, is a renewable
energy company focused on acquiring, developing and operating
a growing portfolio of biomass power generation facilities.
Renegy's other business activities include an established
fuel aggregation and wood products division, which collects
and transports forest thinnings and woody waste biomass
fuel to its power plants, and which sells logs, lumber,
shaved wood products and other high value wood by-products
to provide additional value to its primary business operations.
Find Renegy on the Worldwide Web at www.renegy.com.
The Renegy Holdings, Inc. logo is available
This news release was distributed by PrimeNewswire,
CONTACT: Renegy Holdings, Inc. Media Contact:
Megan Meloni (650) 631-2847 Arizona Public Service Media
Contact: Steven Gotfried (602) 250-3040 Salt River Project
Media Contact: Patty Garcia-Likens (602) 236-2500