Southern Co. digs into biomass, builds massive Texas plant

Southern Power, a subsidiary of Southern Company — one of the largest energy generators in the world — announced that it will be building a huge 100-megawatt biomass power plant in eastern Sacul, Tex. Construction is slated to begin this fall, with production going live in 2012. The plant’s output could be enough to power up to 80,000 homes.

The plant comes as part of Atlanta-based Southern’s acquisition of Nacogdoches Power from American Renewables, another holding company. Austin Energy has already signed a power purchasing agreement to deliver power generated by the biomass plant for the next two decades.

The plant itself, covering 165 acres, will derive fuel from forest residue, wood processing residues and municipal wood waste — about 1 million tons of it every year. This material will be burned and boiled to generate steam to turn turbines. When completed, the plant will be one of the biggest biomass generators in the U.S., expected to cost $300 million, but contribute $30 million back to the local economy each year and create 400 green collar jobs.

The deal between Southern Company and American Renewables is significant due to the former’s high profile in the industry. Southern Power alone owns and operates upwards of 7,500 megawatts-worth of energy plants across Alabama, Florida, George and North Carolina, with 820 megawatts more in development in North Carolina and Texas. The Southern Company, parent to several sizable subsidiaries, serves 42,000 megawatts to 4.4 million customers. As such, it’s likely its moves will be mimicked by other utilities across the country. With many of their sights fixed on solar and wind — Southern Company’s recent acquisition could mark a comeback for biomass.

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