Pepco Energy Services Inc., a subsidiary of Pepco Holdings Inc. (POM), has been awarded a $3.9 million contract to design and build a plant at the Alpha Ridge Landfill, near Baltimore.
The contract award by Howard County, Maryland, entails the construction of a new 1 MW landfill gas-to-energy generating plant at the Alpha Ridge Landfill.
The new plant will use methane gas as a fuel for a reciprocating engine and generator to produce 1 MW of electric power. The electric power produced at the plant will serve the local utility grid and provide power for electric vehicles used at the landfill.
This landfill gas-to-energy project demonstrates Howard County’s vow to optimize its existing assets and to have a positive impact on the environment. It is one of the most important environmental-friendly projects for Howard County. The Howard County continues to look for all possible options to save energy, money and the environment.
The electricity sold at the plant will generate revenues for Howard County that will help offset their landfill costs. Additionally, at full capacity, the plant is expected to reduce roughly 5,400 metric tons of carbon dioxide emissions per year, which would otherwise be produced from traditional fossil fuel power plants.
Howard County indicated that the design and permitting for the project are currently underway. The plant is expected to become operational by early 2012.
Based in Washington, DC, Pepco Holdings is one of the largest energy delivering companies in the Mid-Atlantic region. It engages in both regulated utility and unregulated businesses. The company delivers power to nearly 1.9 million customers in Delaware, the District of Columbia, Maryland and New Jersey. It also supplies natural gas to customers in Delaware.
Pepco Holdings currently has a short term Zacks #3 Rank (Hold), which supports our Neutral recommendation for the stock.
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