FORT DRUM The military is seeking bids for millions of dollars worth of renewable electricity to be generated by a biomass facility located on or neighboring the post.
According to the governments listing, the facility would have generation capacity of 15 to 28 megawatts, with overall annual production of 100 million to 147 million kilowatt-hours. At the maximum price listed in the contract, 5.6 cents per kilowatt-hour, the winning contractor could receive from $5.6 million to $8.23 million in its first year, with the price compounded annually at 4.88 percent for future years. The potential contract would be for a period of either 10 years or up to 25 years.
The request for proposals, issued by the Defense Logistics Agency-Energy, was first listed in December. The notice states the post would buy only electricity in the deal, but not any generational assets.
The two locations listed where a site could be placed are the site of a biomass facility currently being redeveloped by ReEnergy Holdings LLC, Albany, on 2nd St. Southwest, or a 27-acre greyfield site near Steinhilber Road and Route 26, LeRay.
ReEnergys facility, scheduled to be online by late April, has been touted by numerous regional and state officials, including Gov. Andrew M. Cuomo, to supply power to the post, and was selected to sell renewable energy credits to the New York State Energy Research and Development Authority through the states renewable portfolio standard.
Larry D. Richardson, ReEnergys CEO, said he felt his company was well-positioned to provide a competitive bid, and that the company would have a team present at a preproposal conference about the project on Thursday morning at the Dulles State Office Building. The plant is projected to have a generation capacity of 60 megawatts.
The company purchased the plant in March 2012 from Energy Investors Funds Group, Needham, Mass., and estimated investments of more than $30 million to convert it to use biomass instead of coal. Prior to the acquisition, the plant had been idled in 2010.
Mr. Richardson said in the past few months the company had significantly ramped up construction work at the site. He added the company had hired all of its operating staff and had made progress in developing agreements with logging companies to take forest residue that would otherwise be trashed.
Though he declined to talk about the pricing details of the proposal, he said his company had a good handle of the background costs of the project.
Despite concerns at the federal level about defense spending cuts, Mr. Richardson said costs like energy production were ones he didnt expect to see major cuts.
Details about other potential bidders for the contract was not available. Bids for the project will be taken until March 15.
The full listing for the proposed energy agreement can be viewed at http://1.usa.gov/W4TXc1. Information about the pre-proposal conference can be seen at www.upcoming events.ctc.com/armyeitf/fort drum/fdrum_index3.html.