Biomass, New Projects

Biomass power plant planned at DOE’s national laboratory

Johnson Controls (NYSE: JCI), through an energy savings performance contract, will install energy saving measures at a planned biomass steam plant at the U.S. Department of Energy’s (DOE) Oak Ridge National Laboratory (ORNL) in Tennessee.

The steam plant will use wood chips and is expected to save the lab more than $264 million and reduce fossil fuel use by 72 percent, according to a release. In addition, Johnson Controls will perform the power saving measures, including mechanical equipment upgrades, steam system upgrades, and a plant air system upgrade among others.

The ORNL project is financed through a performance contract with Johnson Controls, which allows a customer to make system improvements that are self-funded through cost savings.  Under such a contract, the cost of the upgrades are paid over a specified number of years by the energy, water, and operational cost savings the project generates.

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