Contract awarded for construction of US biogas plant

Constellation, a supplier of electricity and natural gas and a subsidiary of Exelon, is to design, build and operate a $130 million (€96 million) renewable energy plant in the US after signing an agreement with the City of Los Angeles.

Under the agreement, the 27MW power plant will be located at LA Sanitation's Hyperion treatment plant. Hyperion is among the 10 largest wastewater treatment facilities in the world. The facility will use digester gas, produced via Hyperion's sewage treatment process, as its primary fuel source. It will generate steam and electricity that will be used to operate the company's treatment operations.

'This facility will reduce emissions at the Hyperion plant and secure for our city a new energy source that is reliable, efficient and sustainable,' says Traci Minamide, LA Sanitation's COO.

Constellation was awarded the contract following a bidding process. It and its subcontractors will develop, build and operate the co-generation facility for 10 years, with an option to expand the agreement for five additional years.

Commercial operation of the Hyperion co-generation facility is expected by the end of 2016.