New Texas Law to Promote Use of Biomass

Governor Rick Perry has signed into law a bill (HB 1090) that provides grants for the use of waste agricultural and forest materials to generate electricity. Senator Mike Jackson sponsored HB 1090 in the Senate.

Nacogdoches Power, LLC will be available to receive waste material that qualifies under the grant program, as it has completed the permitting for its 100-megawatt (MW) biomass-fired power plant under development in Nacogdoches County, Texas. The Nacogdoches Power facility will help improve air and water quality, reduce the generation of greenhouse gases and contribute to national and regional energy security.

“The passage of this legislation is good public policy. Under this bill, material that is otherwise an environmental problem will now be used to generate electricity for the citizens of Texas. This is a win for the environment, farmers, loggers and communities in Texas, as well as the State’s electric customers,” said Tony Callendrello, Vice President of Nacogdoches Power, LLC.

Nacogdoches Power’s facility will be the first major biomass-fired electric generating plant in Texas and the largest biomass plant in the U.S. Located in an area without transmission constraints, the biomass power plant will provide reliable baseload renewable generation that will operate 24 hours a day, 365 days a year.

Using approximately one million tons of wood fuel a year, the plant will provide approximately 500 new permanent jobs in East Texas. Consumer savings achieved from the electricity production of the power plant exceed the cost of the incentive program, meaning there is a net financial benefit to electric customers.

Since Nacogdoches Power has all of the permits needed to begin construction of the biomass portion of the planned $300 million biomass power plant, it is currently seeking parties interested in long-term contracts for the energy and capacity from the biomass plant or purchasing entitlement interests in the plant.

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