ADAGE Halts Gretna, Florida Project

Contributes Study of the Economic Effect of New Biomass Power Plant on the Local Economy

From the April 2010 Forest2Fuel newsletter.

In March, ADAGE LLC, a joint venture between Duke Energy and AREVA, suspended work on its 55 MW biomass power plant in Gretna, Florida and withdrew its air permit application for the facility. The announcement comes on the tail of the city’s decision to defer a decision approving the project for six months.

Before ADAGE halted the project, Dr. Julie Harrington, the Director of the Florida State University Center for Economic Forecasting and Analysis, quantified the contribution the project would make to the local economy.

Harrington estimated the project would create over 1,100 jobs in the first 2.5 years of construction and operation, including:

  • 471 long-term jobs at the facility, in the forest, and shorter term construction jobs
  • 525 indirect jobs supporting construction
  • 109 induced jobs in consumer goods and services (restaurants, stores, etc.)

Once the plant began operations, the impact was estimated to include:

  • 168 direct permanent jobs in the plant and in the forest
  • 457 indirect jobs in agriculture and in the forest industry support jobs
  • 56 induced jobs in consumer goods and services

In total, the project would have generated $21 million in income annually and more than $5.3 million in state and local taxes. In total, the annual economic impact of this 55 MW plant was forecast to exceed $83 million.

More than in any other state, “not in my backyard” arguments have prevailed and caused several biopower plants to move elsewhere. ADAGE still has plans for a Hamilton County facility, which has received approval from both the state and local governments.

BCAP Q & A:
Q: Which states received the highest total matching payments? Answer
Q: Which regions received the most funding? Answer
Q: Why were payments so heavily weighted toward forest materials? Answer
Q: When will the USDA release the final rules and restart the BCAP program? Answer
Q: The $170 million question: What did the American taxpayer get for the $170,112,607 in BCAP matching payments? Answer
Q: How can the goals of the BCAP Matching Payment Program be met? Answer

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