Eight Flags Energy wins air permit for Florida cogeneration project

The Florida Department of Environmental Protection on Feb. 26 issued the final air construction permit for a new gas turbine cogeneration system, called the Eight Flags project, which will generate electric power, steam and hot water.

Eight Flags Energy LLC will build he new facility in Nassau County on Gum Street in Fernandina Beach, Florida. It will be located within the property line of the existing Rayonier Performance Fibers Fernandina Beach facility.

The Eight Flags facility will consist of an electric/steam cogeneration system, including a nominal 21.7-MW natural gas-fueled turbine and a heat recovery steam generator (HRSG). The HRSG will have duct burners fired with natural gas for supplemental heat, in order to generate additional steam when necessary.

The Eight Flags cogeneration system includes one Solar Titan 250 gas turbine generator set, with a maximum heat input of 188.4 million British thermal units per hour (MMBTU/hr), based on lower heating value of natural gas (or 204.6 MMBTU/hr based on the higher heating value of natural gas). Exhaust gases pass to a 50-foot bypass stack when steam generation is not desired, or to the HRSG. Without auxiliary natural gas firing in the HRSG, it is capable of generating up to 74,163 lb/hr of steam; at its maximum auxiliary natural gas firing rate of 135.3 MMBTU/hr, the HRSG is capable of generating up to 200,000 lb/hr of steam. Additional heat is recovered from the HRSG stack gas exhaust to heat an average of 300,000 lb/hr (maximum of 449,240 lb/hr) of water to 115 to 130 degrees F. From the HRSG, exhaust gases will vent to a 65-foot stack.

Additional equipment includes a three-cell mechanical draft cooling tower. A mobile emergency diesel generator will be brought on-site as needed; however, as a mobile engine, it will not be included in any emissions unit.

A project contact is: Kevin Webber, V.P., Business Development and Operations, Eight Flags Energy LLC, kwebber@fpuc.com.

Florida Public Utilities (FPUC) applied in September 2014 at the Florida Public Service Commission for approval of a contract to take power from this facility. Florida Public Utilities and Eight Flags Energy are both subsidiaries of Chesapeake Utilities Corp. Florida Public Utilities worked out a 20-year contract for this capacity, with the contract to begin right after this cogen goes into commercial operation. That is expected in the period between July 1, 2016, and Dec. 1, 2016.

The PSC on Dec. 30, 2014, approved that contract, writing: “The negotiated contract between FPUC and Eight Flags provides FPUC with a viable source of electric capacity and energy that meets all the requirements and rules governing renewable energy producers. The Eight Flags facility will have the capability to serve a significant portion of FPUC’s base load needs on Amelia Island and should reduce the potential impact of severe weather on critical services. Payments for capacity and energy pursuant to the Agreement are expected to yield $28 million in net present value (NPV) savings to FPUC’s ratepayers over the 20-year term of the Agreement. The performance security requirements of the Agreement sufficiently protect ratepayers in the event of default.”

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.