US-based Entergy Wholesale Operations, the power development division of Entergy Corporation, and PPG Industries, a producer of coatings, chemicals, glass, and fiberglass, have completed a US$ 242 mil…
US-based Entergy Wholesale Operations, the power development division of Entergy Corporation, and PPG Industries, a producer of coatings, chemicals, glass, and fiberglass, have completed a US$ 242 million non-recourse financing for their joint power facility in Lake Charles, Louisiana. Formal groundbreaking for the 425-megawatt cogeneration plant, which will be owned by RS Cogen LLC and operated by PPG, is planned for September with the facility expected to begin operation in 2002. The natural gas-fired, combined-cycle power plant will provide 250,000 lb/hr of process steam to PPG“s adjacent chemical plant and 525,000 lb/hr to be sold to Lyondell Chemical Company. Half of the facility“s electrical output will supply the PPG plant and the other half will be sold by Entergy“s power marketing group on the wholesale power market. Entergy Wholesale Operations and PPG each own a 50% share of RS Cogen. “The financing package is an important endorsement of our strategy to build a leading merchant power program in the US and abroad,” said Geoff Roberts, Entergy Wholesale Operations president and CEO. “We are well positioned for growth in power generation, and our power trading organization enables us to maximize profits from this and other wholesale projects.” For PPG, the plant will reduce the cost of power at its largest chlor-alkali facility. The cogeneration aspect of RS Cogen makes it 15-18% more efficient than conventional power plants. “Energy is the most expensive raw material in chlor-alkali operations, so this project will play an important role in maintaining PPG as a low-cost producer,” said David B. Church, PPG vice president, chlor-alkali and derivatives. The project is expected to generate as many as 450 construction jobs in the heart of Entergy“s retail service area. “Not only is this an important economic boost to the area, but once built, it will help us in our commitment to meet the power needs of our customers with one of the most environmentally clean power sources available,” Roberts said. The plant will use two “F” class gas turbines, providing higher kilowatt output and lower environmental emissions than conventional systems.