BlueRock Energy and ReEnergy Black River LLC have entered into a services agreement to support ReEnergy’s delivery of power from its 60-MW ReEnergy Black River bioenergy facility to the Fort Drum U.S. Army installation located near Watertown, New York.
Under the agreement, BlueRock Energy said Jan. 12 that it is performing load forecasting, scheduling and delivery services from the plant to Fort Drum and other wholesale support services designed to provide ReEnergy timely and accurate power delivery services under ReEnergy’s agreement with Fort Drum.
The Defense Logistics Agency recently awarded a 20-year contract to the ReEnergy Black River facility, which is located inside the fence at Fort Drum, to provide secure, renewable electricity to the installation. The contract is the largest renewable energy project in the history of the U.S. Army, BlueRock Energy said.
The facility, previously fired primarily by coal, was idled in early 2010 by its former owner. ReEnergy acquired the facility in December 2011 and invested more than $34m to convert it to biomass. The converted facility began operations in May 2013. ReEnergy Black River submitted a proposal to the Defense Logistics Agency as part of a competitive procurement process in Spring 2013.
The facility began supplying 100% of Fort Drum’s electrical load as of Nov. 1, 2014. Fort Drum’s electricity needs currently peak at about 28 MW. A transmission line will be built to directly connect the plant to Fort Drum’s substations.
BlueRock Energy said its long-term experience and expanding presence in the New York power market allows it to offer comprehensive wholesale services to existing and proposed Power Plant Asset owners across the state that avails these entities to better manage the logistical and back-office support tasks associated with producing power, forecasting load demand, delivering the energy and accounting for all costs associated with a complex electrical grid and market design.
The New York State Public Service Commission in August 2014 had issued an approval to ReEnergy Black River related to the efforts to directly sell to a customer power out of a recently-revived power plant. ReEnergy Black River had requested issuance of a declaratory ruling that its plans for providing retail electric service to the U.S. Army’s Fort Drum military installation fall within the qualifying facility (QF) exemption from regulation under parts of the state Public Service Law.