Combined heat & power plant to supply Caguas pharmaceutical firm
By The Star Staff
MPC Energy Solutions (MPCES) announced on Tuesday the completion of the acquisition of its Neol CHP plant, a 3.4 megawatt (MW) combined heat and power (CHP) plant in Caguas that provides power to a pharmaceutical company.
The $9 million investment was pending the completion of the construction phase. The plant is majority-owned by MPCES and is now generating its first kilowatt-hours with a long-term power purchase agreement (PPA) in place to supply Neolpharma Inc., the aforementioned pharmaceutical firm.
Martin Vogt, CEO at MPCES, whose headquarters are in the Netherlands, said in a statement that the commissioning of Neol CHP is another important step in terms of executing a project pipeline and a demonstration of MPCES’s commitment to Puerto Rico.
“The territory has an ambitious target to transition to 100% renewable energy by 2050,” Vogt said. “Projects such as the Neol CHP power plant are a part of that transition.”
According to the U.S. Department of Energy’s Office of Energy Efficiency & Renewable Energy, CHP, “also known as cogeneration, is [t]he concurrent production of electricity or mechanical power and useful thermal energy (heating and/or cooling) from a single source of energy. [It is a] type of distributed generation, which, unlike central station generation, is located at or near the point of consumption.”
Energy production from the Neol CHP plant is expected to be 26,000 MW-hours per year. Having a dedicated power source will enable Neolpharma to benefit from a stable supply and reduced thermal energy consumption, resulting in substantial environmental benefits. The plant is forecast to avoid 100,000 tons of carbon dioxide emissions over the lifespan of the PPA – a reduction in carbon emissions of up to 30%.
The project was developed and built by Enernet Global under an exclusive asset development partnership with MPCES. Enernet Global and MPCES are aiming to initiate the development and construction of further sustainable energy projects for the private sector in Puerto Rico this year.
“We look forward to continuing to work in partnership with businesses to continue to support Puerto Rico as it strives to reduce its carbon emissions and make the transition from fossil fuels toward cleaner energies,” Vogt said.