Friday, May 21, 2010

Chevron Energy Solutions and Marine Corps Logistics Base Albany Announce First Navy Landfill Gas Project

/PRNewswire/ -- Chevron Energy Solutions, a unit of Chevron Corporation (NYSE:CVX) , and the Marine Corps Logistics Base (MCLB) Albany today announced the start of construction for the Department of Navy's first landfill gas cogeneration project.

The project will produce 1.9 megawatts of renewable electric power and steam by burning landfill gas collected from a nearby landfill. Chevron Energy Solutions will also complete industrial lighting retrofits in 82 buildings and expand the existing energy management control system. When combined with the cogeneration project, these measures will reduce the base's purchase of utility power and reduce MCLB's carbon emissions by 19,300 tons annually, equivalent to removing 16,000 cars from the road.

"This project is important to the Department of the Navy, the Marine Corps and Dougherty County. And with the help of Chevron Energy Solutions we will surpass our federal renewal energy goals, and fulfill our aspiration of becoming the 'greenest' Marine Corps installation in the nation," said Col. Terry V. Williams, commanding officer, MCLB Albany. "In addition to providing renewable power and energy security and reliability to MCLB, the project provides a valuable long-term source of revenue for Dougherty County. It took the hard work of many different partners to make this project a reality."

Chevron Energy Solutions developed and designed the project and will maintain the landfill gas-to-energy facility, pipeline and landfill gas processing equipment. The new facility will house a dual-fuel engine generator, a stack heat recovery steam generator and two dual-fuel boilers. The primary equipment can operate on landfill gas or natural gas, which provides energy security benefits. MCLB's use of renewable power will increase to 19 percent, which exceeds the EPAct of 2005 and Energy Independence and Security Act of 2007 mandate of 7.5 percent renewable power use by 2013.

Chevron Energy Solutions and MCLB will share in the operation of the generator and steam-producing equipment. Through an Energy Savings Performance Contract (ESPC), Chevron Energy Solutions arranged the financing for the project, which is repaid through the energy costs avoided. The company also guarantees system performance for 22 years.

"MCLB Albany is harnessing the power of an important renewable energy source through a partnership with the local community and we are proud of this effort," said Jim Davis, president of Chevron Energy Solutions. "The project is funded entirely by energy savings and demonstrates how military bases and local governments can work together with private industry to meet federal mandates without increasing taxpayer costs."

Dougherty County will extract and sell the landfill gas to MCLB from the Fleming/Gaissert Road Landfill, which receives approximately 100,000 tons of municipal solid waste each year. The biological decomposition of the waste generates landfill gas that is approximately 50 percent methane gas by volume.

A groundbreaking ceremony was held today and military, government and business officials attended. The project is expected to be completed by April 2011.

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