Today, U.S. Senator Charles E. Schumer announced that the Army intends to award a 20-year contract to ReEnergy Holdings LLC, a biomass energy producer located at Fort Drum that produces energy from renewable sources. The contract still needs final Army approval. The contract is expected to create over 30 new jobs at the plant and over 140 new jobs in ReEnergy's biomass supply chain. Schumer said the contract is a win-win for a growing renewable energy producer in the North Country and for Fort Drum, which will have a reliable, low-cost and clean energy source located right next to its facilities. The proposed deal is expected to help Fort Drum save on energy costs and make the plant energy independent and secure.
"The Army's plan to award ReEnergy a 20-year contract is great news for this marquee North Country energy company and for Fort Drum, which will now have reliable access to clean, low-cost power for years to come. I look forward to working with all relevant entities to see that the Army makes this official, since this deal is so mutually beneficial," said Schumer.
The Defense Logistics Agency (DLA) Energy, in close coordination with the Army Energy Initiatives Task Force (EITF), issued the Notice of Intent (NOI) to Award to ReEnergy Holdings LLC for the purchase of up to 28 megawatts (MW) of electricity from the renewable energy biomass facility at Fort Drum. This project will include a 20-year Power Purchase Agreement (PPA) and provide the installation with 100 percent energy security and sustainability.
Schumer noted that this is the Army's largest renewable energy project to date, and the second EITF project to reach this milestone. The EITF remains committed to executing large-scale renewable energy projects to achieve the Army goal of one (1) gigawatt of Renewable Energy by 2025. The EITF now has eight projects in the contracts and agreements phase representing nearly 175 MW of potential capacity.