September 1, 2010

Returning from almost a two-month break, the Maricopa City Council was greeted with news that a new employer was on its way to town, bringing with it a massive influx of jobs.

“We are thrilled to land this project in Maricopa; anytime you can get manufacturing jobs in a city, it is a huge win,” said Maricopa Mayor Anthony Smith.

The employer, Pinal Power, is a biomass power station that will generate 30 megawatts of renewable energy, about enough to light 354,000 homes.

Construction for the plant is scheduled to start at the end of 2010, and the plant is expected to be operational by the latter part of 2012.

During the construction phase it is estimated 120 jobs will be created to build the plant, and, once the plant is completed, it will be staffed by 25 full-time employees.

The president of the company, Robert Buckingham, added the plant would also create an additional 100 plus indirect jobs.

“This will be a boost to the city of Maricopa’s economy and that of the state,” he said. “We will bring $15 million into the state each year.”

Agricultural crops and landscaping waste are burned in a combustion chamber at the plant; the heat from their flames then boils water, and the steam rotates turbines in a generator, creating electricity. Filtration and air quality measures in the system catch the ash from burning and also recapture the steam. The ash can then be utilized in compost or spread over crops.

“Every year 300,000 tons of green waste is going into landfills in the area; that is our fuel source,” Buckingham said. “This is a clean, renewable energy.”

Once the plant is operational, residents will also be able to drop off approved yard waste at the plant free of charge.

The $92 million facility will be located on a 42-acre site on the southeast corner of White and Parker Road and the Maricopa/Casa Grande Highway. It will be adjacent to the existing Pinal Energy ethanol plant and possibly one day form a green campus.

The parcel of land has already been purchased; all funding is in place for the project, and the company is currently working through permits, Buckingham said.

Buckingham added reasons for building in Maricopa included the proximity to a fuel source and the ability to feed the power generated back into a grid through Electrical District No. 3’s neighboring power station.

“Being so close to ED-3’s power station means it is not necessary for us to construct transmission lines,” Buckingham said.

However, it isn’t only the power production station that will benefit from the deal.

In order to use ED-3’s station the company will need to pay the local power providers hundreds of thousands of dollars per year for what are called wheeling costs, according to ED-3 general manager Bill Stacy.

These dollars can then be used to help offset ED-3’s cost and help to keep rates down in the city.

While the wheeling costs will benefit the company and its consumers, homeowners in the city are unlikely to see any power from the new plant in their homes.

“Renewable can cost up to 14 cents per kilowatt hour, which is more expensive then the eight cents we are paying now,” Stacy said. “We are trying to lower our cost from that eight cents, not increase it.”

Stacy did add that ED-3 is currently receiving about 20 percent of its power from renewable sources.

While ED-3 will not be a target buyer, Buckingham said his company is looking to possibly sell power to state regulated utilities, which are going to be required in the next few years to include 20 percent renewable energy in their portfolios, and possibly even other utility companies outside the state.

To show their support for the project, council unanimously passed a resolution in favor of it.

“We are excited to start this project, and the city has been very helpful,” Buckingham said.

For more information, visit www.pinalpower.com, which should be available later today.