The firm will construct and operate a 3MW power generating plant using renewable energy from the municipality's landfill, and will invest up to $6.7 million in the project to sell low-cost electricity to the city.
To help finance the project, the City of Auburn was awarded $2.5 million in grant funding from the US Department of Energy and the New York State Research and Development Authority to assist with the purchase of three GE Jenbacher cogeneration engines, and to cover necessary legal, environmental and engineering costs.
The landfill gas electricity generation plant will produce enough electricity to supply the equivalent of 1,600 homes, providing the city with significant electrical savings at the Wastewater Treatment Plant and economic development opportunities at the Auburn Technology Park through competitive electricity rates.
Ron Flax-Davidson, vice president of business development at CH Energy Group, said: "We're very pleased to partner with the City of Auburn on this exciting project, which is the culmination of discussions that began with the city in 2007.
"Not only will the plant provide lower-cost electricity to help the city attract and retain businesses, but also clear environmental benefits by utilizing landfill gas, a renewable source of energy."
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