CH Energy to build $9.75M biogas plant in NY

Poughkeepsie, N.Y.-based CH Energy Group (NYSE: CHG) announced a long-term contract to supply electricity to the city of Auburn, N.Y., from power generated using biogas from a wastewater treatment plant.

Under the 15-year deal, CH Energy will construct and operate a 3 megawatt electricity generating plant adjacent to a municipal landfill and wastewater treatment facility in Auburn.

The $9.75 million project, which will include an anaerobic digester to convert wastewater sludge into usable gas, is scheduled to begin construction next spring, and expected to go online in late 2008.

"Officials with the city of Auburn have demonstrated they are forward thinking when it comes to meeting their energy needs, and we're excited about partnering with them," said Steven Lant, chairman, president and CEO of CH Energy.

"This investment expands upon our growing renewable energy portfolio, which already includes ethanol, wind energy and a biomass plant."

CH Energy said its new plant will provide enough energy to serve 2,500 homes, and will offer the city energy savings and benefits through lower electric rates.

The company said that at the end of the 15-year contract, the city will have the opportunity to acquire the plant.