After years of debate, research and planning,
Northern Michigan University is moving ahead with construction of a heating and power plant that will have the ability to use wood chips and byproducts as fuel rather than the fuel oil and natural gas currently used.
The combined heat and power plant will cost $16.4 million. The project also includes $800,000 in long-term maintenance costs at the existing heating plant, which will continue to be used as a backup plant for times of peak steam heat demand. (Translation: Sometime in January and February.)
Still, the new plant, which burns biomass fuel, is projected to reduce annual energy costs by providing up to 88 percent of the current steam heat used on campus. It also will produce up to 15 percent of the university's electrical power, which cuts down on the amount they need to buy from local utilities.
"This will create greater fuel flexibility so the university is protected from volatility in gas pricing," says Art Gischia, associate vice president for business and auxiliary services. "If you're locked into one source, there's no protection. We have established that there's ample wood in the wood shed to fuel the plant's operation. If for some reason the price of wood goes up and natural gas goes down, we can look at adjusting for that. This gives us the flexibility we're looking for. The project will also reduce the carbon footprint of the (existing) plant by about 85 percent."
Site preparation should be underway this fall, and construction is planned for completion in April 2013. It's being funded by internal and bond proceeds, to be paid back through the operational cost-savings, so in essence the plant will pay for itself.
Writer: Sam Eggleston
Source: Art Gischia, Northern Michigan University
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