NORESCO Awarded $106M Cogeneration Project For U.S. Navy In Japan
Westborough, MA - NORESCO has been awarded a $106M project to build a cogeneration power plant at Commander, Fleet Activities Yokosuka (CFAY), Japan, in support of the Naval Facilities Engineering Command (NAVFAC), Far East.
The plant, scheduled to be operational by summer 2008, will provide approximately 39 megawatts (MW) of new capacity. It will provide 14.5 MW of electricity at 50 Hz to support Base activities and 24.5 MW of 60 Hz power capability to provide additional shore power for Navy ships in port. Through efficient heat recovery, the cogeneration system will also provide steam generation capacity. Overall, the system will enhance system reliability, save energy, improve operational flexibility to meet the complex mission requirements, and reduce CO2 emissions by more than 1.3 million tons.
Developed as an energy savings performance contract (ESPC), the project will be funded by guaranteed cost savings over a 20-year term. This self-funding structure eliminates the need for capital appropriations to pay for the energy infrastructure improvements. Annual cost savings in excess of $14M to the Navy will pay for the financing of the complete installation and provide $144M for operations, maintenance, and repair services on major equipment over the contract term. The plant will be operated, managed, maintained, and repaired by an integrated contractor/government operations team.
"This historic project is the culmination of exceptional effort on the part of the Naval Facilities Engineering Command, Far East, in Yokosuka, Japan, and the Naval Facilities Engineering Command Southwest Specialty Center Contracts Core in Port Hueneme, California," said Neil Petchers, President and CEO of NORESCO. "Their dedication and commitment to energy conservation and security were instrumental to this energy partnership with NORESCO. This project will provide substantial energy and cost savings to the Government, reduce our dependence on foreign oil, and have a positive environmental impact through a dramatic reduction in harmful emissions and greenhouse gases, while supporting the mission readiness of the Yokosuka Naval Base. To provide these infrastructure improvements in support of our service men and women stationed at Yokosuka is an honor. It is also a responsibility that NORESCO takes with the highest possible level of commitment."
SOURCE: NORESCO