Constellation, a subsidiary of Exelon Corp. (NYSE: EXC), and LA Sanitation on Nov. 17 announced the start of construction of a 25-MW (net) biogas-fueled cogeneration plant, which will supply 100% of the steam and electricity produced to power LA Sanitation’s Hyperion Water Reclamation Plant.
Los Angeles Mayor Eric Garcetti, City Councilmember Mike Bonin, and representatives from LA Sanitation and Constellation attended a groundbreaking ceremony at the Hyperion site to mark the occasion. The cogen is expected to generate more than 173 million kilowatt-hours of electricity per year and supply up to 70,000 pounds per hour of steam, using the methane captured through Hyperion’s sewage treatment process for fuel. Commercial operation of the Hyperion cogen plant is scheduled for the end of 2016.
LA Sanitation selected Constellation as the project developer after a competitive bidding process. Constellation and its affiliate Exelon Generation will develop, construct and operate the cogen for 20 years, with an option to extend the agreement for two additional five-year terms.
“Constellation is proud to work with City of Los Angeles and LA Sanitation to develop and operate a cogeneration plant for the Hyperion facility that will help the community move toward its economic and environmental goals,” said Gary Fromer, senior vice president, distributed energy at Constellation. “Biogas-fueled cogeneration offers wastewater treatment facilities a cost-efficient, sustainable, and resilient energy source that is highly effective at reducing methane and carbon dioxide emissions.”
The Hyperion cogen is Constellation’s newest project through its distributed energy business, which has more than 300 MW of assets in operation or under development for commercial and government customers throughout the United States. Constellation offers distributed energy solutions, including solar, cogeneration, backup generation, fuel cells, and battery storage, that may require no upfront capital from customers and may provide fixed power costs that are less than projected market rates.
Constellation is a leading competitive retail supplier of power, natural gas and energy products and services for homes and businesses across the continental United States. Baltimore-based Constellation is a subsidiary of Exelon Corp., the nation’s leading competitive energy provider, with 2014 revenues of approximately $27.4 billion, and more than 32,000 MW of owned capacity.
As the lead agency for Los Angeles environmental programs and initiatives, LA Sanitation protects public health and the environment through the administration and management of three program areas: Clean Water (Wastewater), Solid Resources (Solid Waste Management) and Watershed Protection (Stormwater).