FDS Coke Plant, LLC Meets with Northwest Ohio Elected Officials to Obtain Support for Classification of Industrial Co-Generation of Electricity as Renewable Energy Resource – Research Analysis Indicates Ohio Electric Rate Payers Could Save An Estimated $2.5 Billion
On February 27, 2012, FDS Coke Plant, LLC (FDS) representatives met with officials with the City of Toledo, City of Oregon, and Lucas County Ohio to encourage support for Ohio legislative changes to classify the co-generation of electricity from waste gas/waste heat at Ohio air contaminant sources as a “renewable energy resource” that can be used by public utilities to meet Senate Bill 221’s renewable energy benchmark requirement. FDS consultant Labyrinth Management Group, Inc. (LMG) estimates that defining co-generation of electricity from projects such as the FDS Co-Generation Facility as a renewable energy resource could save Ohio rate payers at least $2.5 Billion dollars in renewable energy credit (REC) costs for the 10 year time period from 2015 through 2025.
Classification of co-generation as a renewable energy resource eligible to sell RECs will stimulate the generation of electricity with zero or net negative air pollutant emissions that will improve ambient air quality in Ohio. Unlike wind and solar renewable technologies, industrial co-generation of electricity can also qualify as a “base load” resource to meet peak electricity demands and reduce market pressure on higher prices for peak load electricity. This is an especially important characteristic based on First Energy’s recent retirement of 2,300 MW of base load electricity from coal-fired power plants.
FDS calls upon Ohio elected officials to ensure that new co-generation of electricity projects such as the proposed FDS Coke Plant and Co-Generation Facility also qualify as a renewable energy resource in any Ohio legislative changes. Senate Bill 289’s existing definition includes only air contaminate sources that have been in operation since on or before January 1, 1985. This restriction does not encourage the use of new technologies at existing manufacturing plants, will not stimulate the construction of new manufacturing plants in Ohio, and fails to leverage shale gas development and low natural gas prices with industrial co-generation to maximize Ohio’s economic development potential. According to George Weber, President of FDS, the ability to sell RECs associated with the electricity generated by the FDS Project would also be a “tipping point” for obtaining final construction funding of the estimated $800 million dollar project just as AK Steel has stated is the case for the Middletown co-generation project.
Additional FDS talking points on this issue and a summary of LMG’s research analysis is available: -here-.
For Release 10 a.m. EDT, February 29, 2012
Labyrinth Management Group, Inc.
Phone: 330-764-4825 ext 201
Labyrinth Management Group, Inc. (LMG) is the Technical Project Manager for the FDS Project. LMG is a Strategic Environmental, Health & Safety (EHS) consulting firm dedicated to providing businesses with strategic advice and cost-effective solutions that manage EHS risks, enhance shareholder value, and provide a competitive advantage.