In Texas, the natural gas glut will go to service electricity production and job creation.
Panda Temple Power, LLC, a subsidiary of Panda Power Funds, announced on Wednesday success in moving ahead to build a natural gas power plant in Temple, Texas.
The company completed financing for the facility, which will be located on 250 acres at the Synergy Industrial Park.
Because it will use natural gas, which it will receive from the Barnett shale and other reserves, Panda boasts that the power plant will be “one of the cleanest in the United States.”
CO2 emissions will be under 10 parts-per-million (ppm), and nitrogen oxide emissions will be under 2.0ppm.
The plant will generate 758 megawatts of power for 750,000 homes in the area, creating up to 800 construction jobs, 27 jobs for facility operators, and 45 indirect community jobs.
From the press release:
“It has been an uphill battle, in a very difficult financial market, to get this project off the drawing board and out of the ground,” said Todd W. Carter, president and senior partner of Panda Power Funds. “Since the beginning, our team never lost sight that Texas needs the power. Thanks to our financial partners, our Panda team and the strong backing of state and local officials, the State of Texas will soon be the beneficiary of critically needed electricity, more jobs, and greater economic development”
Within the first ten years of operation, the plant is expected to provide approximately $1.6 billion to the surrounding community. Operations will kick off at the end of 2014.
Panda has signed agreements with Siemens Energy Inc (NYSE: SI) and Bechtel for the plant equipment. Bechtel will engineer and head construction for the plant, while Siemens will provide two gas turbines, one steam turbine, three generators, and control system equipment.
Bill Jones, III, Mayor of Temple, Texas, is excited for the new project:
“Panda Energy is exactly what we in Temple look for in a new corporate citizen. Since first coming to Temple, they have shown us that they are serious developers of power for our state and that they know how to be a strong citizen of a community. I visited the Panda Energy-Brandywine facility in Maryland that supplies power to our nation's capital and saw first hand the lengths that Panda goes to in making sure that they are good stewards of the environment while supplying the power needs of the region.”
Though natural gas still creates emissions, it is significantly cleaner than other fossil fuels used in most power plants.
And because of the recent natural gas boom in the U.S. due to shale development, natural gas prices are at a ten-year low.
Panda has not announced which companies it will receive natural gas from, but a number of companies are involved in developing the Barnett shale and could be potentials.
Panda plans to start construction on the plant this month.
That's all for now,