DOVER, Del., Sept. 19, 2014 /PRNewswire/ -- Chesapeake
Utilities Corporation (NYSE: CPK) ("Chesapeake") announced today
that its subsidiary, Eight Flags Energy, LLC ("Eight Flags"), is
pursuing the development and construction of a combined heat and
power plant in Fernandina Beach on
Amelia Island in Nassau County, Florida. The plant will be
built on a site to be leased from Rayonier Performance Fibers, LLC
("Rayonier Performance Fibers"), a subsidiary of Rayonier Advanced
Materials, Inc. ("Rayonier Advanced Materials"). The site is
adjacent to a cellulose specialties plant that Rayonier Performance
Fibers operates. The combined heat and power plant will
generate steam that will be sold to Rayonier Performance Fibers,
pursuant to an agreement executed by Eight Flags and Rayonier
Performance Fibers, for use in the operation of Rayonier
Performance Fibers' plant. The combined heat and power plant
also will produce approximately 20MW of base load power that will
be sold to Chesapeake's wholly-owned subsidiary, Florida Public
Utilities Company ("FPU"), for distribution to its retail electric
customers.
"This is an exciting project for our company because it is an
example of what can be accomplished when two parties work together
to find a way to develop an outcome that is greater than either
could have accomplished alone. In this particular instance,
we have coupled the communities' desire for reliable,
environmentally friendly electricity with Rayonier Performance
Fibers' need for steam to lower costs for both. This is a
case where everyone truly wins," said Michael P. McMasters, President and CEO of
Chesapeake Utilities Corporation.
"Partnerships like this are not only great for business, but
provide a significant benefit to our neighbors on Amelia Island through more reliable and
economical electric service," said Paul
Boynton, Chairman, President and CEO of Rayonier Advanced
Materials, Inc. "We're proud to be part of a solution
that offers additional operational flexibility to our plant while
helping to provide reliable and cost-effective power to
Amelia Island residents."
"We are pleased to see this innovative project come together
because it will provide so many benefits to FPU customers and the
entire community. Our goals have always been to find ways to
improve reliability to our Amelia
Island customers and to lower fuel costs for all of our
customers. This project helps us in getting closer to
achieving those goals," said Jeffry M.
Householder, President of Florida Public Utilities
Company.
Rayonier Advance Materials currently operates boilers at its
Fernandina Beach site, which
provide steam and generate electricity needed to operate its
production facility. They currently sell the excess electricity it
generates to FPU. The combined heat and power plant will provide a
cost efficient supply of steam that will be sold to Rayonier
Advanced Materials to help optimize its operations.
The plant will feature a Solar Turbines Titan 250 industrial gas
turbine generator set, one of the original equipment manufacturer's
most powerful and efficient turbine packages. Rentech Boiler
Systems will supply the heat recovery steam generator. FPU
and Peninsula Pipeline Company, Chesapeake's intrastate
natural gas pipeline subsidiary, will transport natural gas through
their distribution and transmission systems, ultimately delivering
it to the plant.
The construction of the plant and the transactions between Eight
Flags and Rayonier Advanced Materials are subject to various
conditions, including obtaining necessary governmental approvals,
regulatory and environmental permits and the parties' completion
and execution of various agreements. If all conditions are
satisfied, construction of the plant is currently scheduled to
commence in early 2015 with commercial operation expected to
commence in July 2016.
About Chesapeake Utilities Corporation
Chesapeake
Utilities Corporation is a diversified energy company engaged in
natural gas distribution, transmission and marketing; electricity
distribution; propane gas distribution and wholesale marketing;
advanced information services; and other related services.
Information about Chesapeake Utilities Corporation and the
Chesapeake family of businesses is available at www.chpk.com.
About Florida Public Utilities Company
Florida Public
Utilities Company is a wholly-owned subsidiary of Chesapeake
Utilities Corporation. Headquartered in West Palm Beach, Florida, FPU distributes
natural gas and propane and provides electric services to
approximately 100,000 customers in markets throughout
Florida. For more information, visit www.fpuc.com.
About Rayonier Advanced Materials, Inc.
Rayonier Advanced Materials, Inc. is the leading global supplier of
high-purity, cellulose specialties products, a natural polymer for
the chemical industry. Working closely with its customers, the
company engineers natural polymeric chemical chains to create
dozens of customized high-purity performance fibers at its plants
in Florida and Georgia. Rayonier Advanced Materials is
consistently ranked among the nation's top 50 exporters and
delivers products to 79 ports around the world, serving customers
in 20 countries across five continents. For more information, visit
www.RayonierAM.com.
Cautionary Note Regarding Forward-Looking Statements:
Statements in this release that are not historical are
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Words such as "expect," "likely," "outlook," "forecast," "would,"
"could," "should," "can," "will," "project," "intend," "plan,"
"goal," "target," "continue," "sustain," "believe," "seek,"
"estimate," "anticipate," "may," "possible," "assume," variations
of such words and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements are
not guarantees of future performance and are subject to risks,
uncertainties and assumptions that could cause actual results to
vary materially from those indicated, including the factors
described in Item 1A (Risk Factors) of our most recent Annual
Report on Form 10-K and Quarterly Report on Form 10-Q, each of
which is incorporated herein by reference, and in other documents
that we file or furnish with the Securities and Exchange
Commission. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated or
anticipated by such forward-looking statements. Accordingly, you
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they are made. Except
to the extent required by law, the Company does not undertake, and
expressly disclaims, any duty or obligation to update publicly any
forward-looking statement after the date of this release, whether
as a result of new information, future events, changes in
assumptions or otherwise.
For more information,
contact:
Jeffry M.
Householder, President
Florida Public Utilities Company
904.261.3663
SOURCE Chesapeake Utilities Corporation