Southern Company has reportedly agreed to buy the biomass facility of Nacodoches Power for an undisclosed amount.
The biomass facility in Sacul, Texas, is set to open during the third quarter, with operations set to start in 2012. The 165-acre project will be one of the largest biomass-fueled electric generating facilities in America, capable of generating approximately 100 megawatts
The plant will be fueled with biomass materials, including forest residue from the surrounding areas, wood processing residues and clean municipal wood waste. The project will require around 1 million tons of fuel annually.
The plant’s output is committed through a 20-year power purchase agreement with Austin Energy, the municipal utility owned by and serving Austin, Texas.