Mighican-based company DTE Energy Services is set to buy up a significant share in a coal-fired power plant in California, to convert the facility to 100% biomass fuel.
The company is acquiring stakes in the 49.5-megawatt Mt. Poso Cogeneration Company facility from owners Red Hawk Energy and Northern Star Generation.
The third partner in the Mt Poso plant, MacPherson Oil, intends to continue its ownership and management interest in the facility.
Operating since 1989, the Mt. Poso plant currently uses a blend of coal, coke and waste tires to generate energy, but DTE intends to convert the facility to use urban wood waste, tree trimmings and agricultural residues.
As a biomass facility, it would produce about 44MW of power, DTE said, enough electricity to supply about 35,000 homes. Power is to be sold to California utility PG&E under a long-term power purchase agreement.
The Ann Arbor-based company has completed a similar biomass conversion in Cassville, Wisconsin, and has another under way in Stockton, California.
It also operates biomass power plants in Woodland, California. and Mobile, Alabama.
DTEES Vice President Steve Sorrentino said: “We are excited to have the opportunity to acquire an interest in the Mt. Poso plant and to convert into a 100-percent renewable power source.”
Mr Sorrentino said conversion of the facility to burn renewable biomass is now under way and is expected to be complete in 2012.
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