First of a Kind Renewable Energy Combined-Cycle Cogeneration Project Moving Forward in Maine

---

Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Loring BioEnergy, LLC (LBE) (Limestone, Maine) is developing a 55-megawatt cogeneration plant to be located at the Loring Commerce Centre, formerly Loring Air Force Base, in Limestone, Maine. Permitting and financing for the $57 million project have been secured and the selection of a firm to provide engineering, procurement, and construction (EPC) is expected to be finalized this fall.

Construction for the dual fuel combined-cycle power project is expected to begin before the end of the year. One of the more interesting aspects of the project has been the recent approval by the Maine Department of Environmental Protection to utilize a proprietary blend of ethanol and diesel known as O2Diesel™, a proprietary clean diesel technology developed by Newark, Delaware based O2 Diesel, Incorporated (AMEX:OTD).

LBE is currently permitted to run for up to 120 days per year on diesel and the balance of the year on natural gas. This "fuel switching" capability provides LBE the opportunity to purchase natural gas at lower cost "interruptible" rates for either economic or environmental reasons. Adding this proven proprietary ethanol-diesel blend technology to LBE’s fuel mix, in compliance with LBE’s permit, qualifies the plant for Renewable Portfolio Standard (RPS) credits, thus making LBE a "green" renewable plant for the period of time it runs on O2Diesel™. It is possible that emission improvements through the use of the ethanol-diesel blend may increase the number of days per year LBE is permitted to run on renewable fuel; this will be evaluated when the LBE plant comes on-line in early 2007 as currently projected.

The baseload combined-cycle project is currently based on a General Electric Frame 6B (MS6001B) combustion turbine generator equipped with Dry Low NOx combustors and Selective Catalytic Reduction to control emissions of oxides of nitrogen. A 250,000 pounds per hour heat recovery steam generator will provide steam heat for existing the Loring Commerce Centre businesses.

This is the first natural gas power project to be developed in Northern Maine. To get the natural gas to the site an existing, but idled, United States Air Force jet fuel line will be upgraded with new valves and compression and then tied into the Maritimes and Northeast pipeline. This will provide the natural gas requirements for the project and an additional five million cubic feet a day of natural gas availability to major manufacturers along the 200-mile pipeline.

The cogeneration project represents the first phase of an "Ecoplex," an environmental ecological industrial complex, and will eventually include an ethanol production facility.

Gahagan & Associates, LLC, an equity partner of LBE, is evaluating the potential for facilitating the use of O2Diesel™ in other turbine applications where fuel switching may be an option and economic and environmental considerations may offer added value to existing or planned power generation projects.

Stone and Webster Management Consultants, Inc. (Houston, Texas), a member of the Shaw Group, also an equity partner in LBE, has provided the owner’s engineering requirements for this military base infrastructure rehabilitation project.

View Plant Profile - 1066667
View Project Report - 37000393

Industrial Information Resources (IIR) is a Marketing Information Service company that has been doing business for over 22 years. IIR is respected as a leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.