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Mar. 27, 2002: DOE’s Biomass And Methane Power Contracts To Cut Costs At Federal Sites

March 26, 2002
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WASHINGTON, DC — The U.S. Department of Energy (DOE) has announced that five energy service companies have been selected to use performance-based contracts to reduce energy use, manage utility costs, and promote renewable energy at federal facilities by using biomass and alternative methane energy sources.

Biomass includes dedicated energy crops and trees, agricultural crop residues, aquatic plants, wood and wood residues, animal wastes, and other organic waste materials. Alternative methane is generated in landfills, wastewater treatment plants, and coalbeds.

Secretary of Energy Spencer Abraham said that the contracts “encourage innovative, biobased energy technologies to reduce federal energy consumption, without cost to the American taxpayers. Our goal is to make bioenergy cost-competitive with traditional energy sources.”

The energy service companies selected for the Energy Savings Performance Contract (ESPC) program for biomass and alternative methane are:

  • Constellation Energy Source, Baltimore, MD;
  • DTE Biomass Energy Inc., Ann Arbor, MI;
  • Energy Systems Group, Evansville, IN;
  • Systems Engineering and Management Corporation, Knoxville, TN; and
  • Trigen Development Corporation, Baltimore, MD.

    Working with DOE’s Federal Energy Management Program (FEMP), these companies will develop, finance, and implement projects that guarantee energy-related cost savings at federal facilities. In return, the companies receive fixed payments derived from the energy cost savings achieved. Since the capital investment comes from the private sector, the projects do not require government funding.

    Publication date: 03/25/2002

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