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4 December 2006 -- Lower Colorado River Authority (LCRA) and Microgy, Inc. announced an agreement for the purchase, for an eighteen-month period, of all renewable natural gas (RNG) generated from Microgy's Huckabay Ridge facility in Stephenville, Texas.
In addition, the agreement contemplates that the parties will work together regarding the potential purchase by LCRA of carbon offset credits and renewable energy credits produced by the facility. Once completed and fully operational, the facility owned by Microgy, a subsidiary of Environmental Power Corporation, will generate up to 2 million cubic feet of RNG per day from cow manure and other agricultural wastes for use in any of LCRA's three natural gas-fired power plants, and is also expected to generate approximately 200,000 metric tons of carbon offset credits per year.
With an expected commercial production of 650,000 mmBTUs of natural gas per year, Huckabay Ridge will be generating the equivalent of 12,700 gallons of heating oil per day from the manure of approximately 10,000 cows at the 8-digester site. The biogas produced at the facility will be treated to commercial natural gas standards, compressed and transported via pipeline to LCRA power plants. The facility, currently under construction, is expected to be generating gas at full capacity by the end of the first quarter of 2007.
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