Peregrine Energy Plans To Build Biomass-Fueled Cogeneration Unit In Hartsville Complex, South Carolina

Peregrine Energy Corporation (Peregrine Energy) is planning to develop a new woody biomass-fueled cogeneration plant at Sonoco’s Hartsville Manufacturing complex. Peregrine Energy will invest $135 million in the project. Peregrine Energy is planning build and own a new 50 megawatt capability facility that will be capable of generating enough electricity to power about 14,000 homes. The new biomass-fueled cogeneration facility will replace Sonoco’s present coal-fired boilers.

Once the facility is operating, Peregrine Energy plans to sell the whole electrical output and all renewable energy certificates linked with the plant to Progress Energy Carolinas, Inc., and low pressure steam from the plant to Sonoco for use in the manufacture of recycled paperboard and other converted products at its Hartsville complex.

The proposed facility will sit on a 12- to 15-acre location within the Sonoco complex and will utilize emission control technologies that meet BACT (Best Achievable Control Technology) standards. It is expected that the application for the new facility’s air permit will be filed in May 2009. Upon issuance of the permit, major equipment, together with boiler, turbine generator, air pollution control components and fuel handling systems will be ordered. Construction activity is planned to start once the air permit is issued and it is anticipated that the facility will be commercially operational by the fall of 2012.

The project also would benefit the areas’ forestry industry by utilizing pre-commercial thinning and waste logging residues as the woody biomass fuel for the project.

Presently, when timberlands are thinned or harvested, woody debris from tree tops, limbs and stumps is left on the ground to deteriorate. This dying vegetation raises the risk of fires, negatively impacts healthy trees through higher rates of infestation and disease and releases significant quantities of methane into the environment.

Walker said Peregrine Energy is delighted to be working with blue-chip companies like Sonoco and Progress Energy Carolinas to develop a renewable energy facility in Hartsville. “This combined heat and power generating unit will use an abundant, renewable, carbon-neutral fuel source.” he said. “It is anticipated that the plant will employ approximately 30 full-time workers and that as many as 300 construction-related jobs could be created during its development. In addition, the gathering, processing and transporting of woody biomass to the facility could create more than 110 additional jobs in the region.”

“We’re proud to be part of this innovative project as part of our commitment to a balanced energy future,” said Lloyd Yates, president and chief executive officer of Progress Energy Carolinas. “This is a great environmental success story, and Sonoco’s considerable experience in forestry operations will help keep the cost of fuel low, which is important in ensuring this is a cost-effective renewable energy resource for our customers.”