Jo-Carroll Energy has placed a temporary hold on a project to build an 80-megawatt biomass power plant in Carroll County.
The cooperative has pursued permits and plans to build the Sand Prairie Station biomass plant since 2007 but studies, complex regulatory matters and financing negotiations have slowed the project.
“We are not abandoning the project,” said Jo-Carroll Energy president and CEO Michael W. Hastings. “Many necessary matters have already been completed, such as the filing of the air permit application. Jo-Carroll Energy will carefully monitor the market price of power, the regulatory environment and any legislation related to a national energy policy as the board considers how to move forward with the biomass power plant.”
A hydrology study on the site, to determine sufficient water supply is available to operate the plant, has been completed. Application for an air permit was filed in December 2009, and the water discharge permit application was filed in April 2010.
The cooperative has an option on approximately 60 acres immediately south of the Danisco plant on Illinois State Route 84 between Savanna and Thomson. While Jo-Carroll Energy continues to seek potential partners for the project, estimated costs for the project have increased significantly over the past three years—from an estimated $140 million when the project was announced to approximately $320 million. The board is also considering the possibility of a smaller plant.
Current interest in biomass as an alternative, renewable fuel is mixed, Hastings added. An EPA rule no longer distinguishes emissions from burning biomass, which includes wood waste and crop residues, from emissions produced from burning of fossil fuels such as coal. Other rules being proposed by the EPA are negatively impacting the fledgling biomass energy market.
“As we said in 2007, we are committed to building a project that meets our growing energy needs, promotes long-term rate stability, creates good-paying jobs, adds to the local tax base, and supports local agriculture in a sustainable, environmentally responsible fashion,” Hastings observed.