Rayonier Pulp Mill

Chesapeake Utilities Corporation subsidiary, Eight Flags Energy, LLC, is pursuing the development and construction of a combined heat and power plant in Fernandina Beach on Amelia Island in Nassau County, Florida, US.

The plant will be built on a site to be leased from Rayonier Performance Fibers, a subsidiary of Rayonier Advanced Materials. The site is adjacent to a cellulose specialties plant that Rayonier Performance Fibers operates. Rayonier Pulp MillThe CHP plant will generate steam that will be sold to Rayonier Performance Fibers, pursuant to an agreement executed by Eight Flags and Rayonier Performance Fibers, for use in the operation of Rayonier Performance Fibers’ plant.

The CHP plant also will produce approximately 20 MW of base load power that will be sold to Chesapeake’s wholly-owned subsidiary, Florida Public Utilities Company (FPU), for distribution to its retail electric customers.

“This is an exciting project for our company because it is an example of what can be accomplished when two parties work together to find a way to develop an outcome that is greater than either could have accomplished alone. In this particular instance, we have coupled the communities’ desire for reliable, environmentally friendly electricity with Rayonier Performance Fibers’ need for steam to lower costs for both. This is a case where everyone truly wins,” said Michael P. McMasters, President and CEO of Chesapeake Utilities Corporation.

The plant will feature a Solar Turbines Titan 250 industrial gas turbine generator set, one of the original equipment manufacturers most powerful and efficient turbine packages. Rentech Boiler Systems will supply the heat recovery steam generator. FPU and Peninsula Pipeline Company, Chesapeake’s intrastate natural gas pipeline subsidiary, will transport natural gas through their distribution and transmission systems, ultimately delivering it to the plant.

If all conditions are satisfied, construction of the plant is currently scheduled to commence in early 2015 with commercial operation expected to commence in July 2016.