E-Newsletter - A Publication of Interstate Resources

Tuesday, July 1, 2008

Evergreen Community Power Addresses Environmentally Responsible Energy Solutions

Interstate Resources News homepage: http://news.interstateresources.com/  

Source: Interstate News, Summer 2008

Life at 7th and South Streets in Reading, Pennsylvania, these days is anything but “normal.” On a 6-acre plot of ground nestled behind United Corrstack (UCI), one can watch the transformation take place on a daily basis. Neighbors, Reading residents, commuters – all can see the structure that is changing the Southern landscape of the City.

Evergreen Community Power (ECP) project is alive and well, and positioned to make a long standing impact on the region.

What is “Evergreen Community Power?”

A steam boiler, a power plant, a recycling facility, an alternative to landfills, a “state-of the-art” alternative energy solution – all the above and then some.

Before it was “fashionable” to be“green,” Evergreen Community Power was launched as a“flag ship” project for the company to demonstrate
INDEVCO/Interstate Resources (IRI) commitment to serving the community by addressing environmentally responsible energy solutions, recycling, and creating non-fossil fuel based sustainable electric power generation. This concept was initiated in 2003, debated, developed further through 2005, and then fully committed to as a business investment in 2006.

ECP will be the first Circulating Fluidized Bed (CFB) Boiler supplied by an Austrian company (
Austrian Energy and Environment) in North America. It is designed to produce over 300,000 pounds/hour of high pressure steam and generate up to 30 megawatts of electric energy –all without the use of any fossil fuel.

Why would a privately owned company take on such a project?

The answer is simple – growth, stability and predictability. United Corrstack, a 100% recycled mini-mill, requires large quantities of steam and power to produce over 435 tons/day of corrugated medium. All of its energy presently comes from fossil fuel (natural gas or oil), as well as purchased power. Filling up your automobile or your oil tank at home is a grim reminder these days of how energy costs have escalated.

If United Corrstack did nothing to address its energy costs, it would be a recipe for disaster and a clear “going-out-of-business” fate. But the owners had the foresight to become less dependent on fossil fuel and to provide a sustainable energy solution; they have made a significant commitment to ensure the longevity of the business in Reading for its employees and the community by being forward thinkers, willing to invest for the long term.

What will be the fuel for Evergreen Community Power?

This question holds one of the “keys to success” for the project. Before any dirt was turned on the site, ECP needed an air permit in hand. This was obtained in June of 2007. In this permit, the project had to define likely fuels and get approval from the State of Pennsylvania to meet air emissions, which was no small task.

Due to the CFB technology and state-of-the art emission control systems, the fuel options for ECP are broad and provide flexibility and cost-saving opportunities. For example, the boiler is permitted to burn wood waste, pallets, creosoted wood, rail road ties, utility poles, construction and demolition sorted wood, tire derived fuel, plastics, carpet and paper mill sludge as well as selective food residual waste streams. All of the fuel will be processed off-site and delivered to ECP for short term storage and delivery to the boiler.

What’s the current status of the project?

Construction activity is progressing rapidly on multiple fronts. The photo provides a snap shot of the construction status. The following are highlights of the current status:

• During the June UCI annual outage, the electricaltie-in was completed with Met-Ed/First Energy, the regional electrical utility.

• The 30 MW Siemens Steam Turbine-Generator is inplace, with ancillary equipment fabrication under way.

• The boiler fabrication continues with the water wall panels being fitted, refractory application, and air pollution control equipment being added in the back-end of the process.

• The fuel storage reclaim system has just been installedand construction will begin soon on the fuelstorage silo.

• At this point, all major contracts have been executed and work is in progress in all areas. A total of 225 contractors are now actively working at the site.

• All salaried members of the ECP operating team have been hired and are now on site. Several members of the existing Interstate-Reading organizations will soon migrate to the new ECP organization. Four Lead Shift Operators have been hired and will join the operationin August. The balance of the operations and maintenance personnel will be hired in the near future.

• The operations team is working with the project team to develop plant controls, operating systems, procedures and training systems.

The next key milestone will be the hydrostatic testing of the boiler, scheduled for the third quarter of this year. Final check out and initial operation are currently anticipated by year-end. Though very complex, the project is exciting. The execution of the check out and start up efforts is critical for the ongoing performance of the plant.

We look forward to a fourth-quarter start for our new business.

Anticipate, Anticipate, Anticipate - one of the core tenets of the culture of the company. ECP embodies the meaning of “anticipate” by identifying global energy changes, assessing business risk, and moving forward deliberately. The long term success of this project will impact all areas of the IRI business units in a very positive way. All employees can be proud of working for an organization that is taking a leadership position in pursuing sustainable initiatives and moving toward future energy independence.

Evergreen Community Power is a member of Interstate Resources, Inc. and both are members of INDEVCO Group.

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