Clean Energy Future-Oregon, LLC President Bill Siderewicz says once its second gas-fired electricity producing power plant is up and running, the two power plants will have a total “ripple” effect of $28 billion to the local economy.
Siderewicz says each power plant has a lifetime 40-year impact on Ohio, measured at $14 billion per plant.
As part of its Oregon Energy Center (OEC) Project, a new 955 megawatt gas-fired electricity production project will be constructed east of N. Lallendorf Rd., at the end of Parkway Rd., and immediately south of the existing railroad line.
Under current plans, the facility will be financed by January 2018, break ground in February 2018 and be fully operational by June 2020. Its wholesale electricity output will be adequate to meet the power needs of about 900,000 homes.
This is in addition to an 800 megawatt facility already under construction at the site and expected to be completed by this spring. Both plants combined could provide low-cost power to 1.8 million homes, “which is pretty phenomenal for a piece of land that covers about 30 acres,” Siderewicz said at an Oregon-hosted news conference Wednesday.
Clean Energy Future Oregon President Bill Siderewicz speaks as Michael Beazley and Mayor Mike Seferian look on. (Press photo by Ken Grosjean)
Siderewicz said the financial benefits will come through new construction jobs, purchase of local construction goods and services, local income tax, state sales tax, local property tax, water purchase, wastewater service purchases, new full time jobs, state income tax, purchase of local gas transport services, purchase of Ohio-produced natural gas and local labor and parts necessary for plant maintenance and turnaround.
In addition, local union work forces, including hundreds of construction workers, will have steady work for a 2½ year period. Once up and running, OEC is expected to employ about 26 people and have an annual payroll of $3 million.
“It puts people to work, brings us lower-priced energy and achieves things for us to keep this region competitive for many years,” said Oregon City Administrator Michael Beazley.
Siderewicz’ venture company, Clean Energy Future, LLC, has been involved in this non-utility business since 1980 and has completed 35 such facilities representing 14,350 megawatts of generation capability. For developers Siderewicz and William Martin, it is the fifth project in Northern Ohio — an investment of $4.5 billion in the state. CEF is headquartered in Manchester, Massachusetts.
Siderewicz says non-utility firms such as CEF have met 100 percent of any Ohio coal plant disclosures by bringing private investment to Ohio to build projects like OEC and its neighboring plant to the Oregon Clean Energy Center. Currently, there are 11,386 megawatts of non-utility gas-fired projects in Ohio either running, in construction or in advanced development. These modern gas-fired projects represent about $12 billion of new investment in Ohio, resulting in a need for 18 million man hours of construction labor.
Press material provided by Siderewicz adds “these economic benefits of such non-utility projects do not include the other equally significant benefit to every homeowner, business and industry in Ohio — long-term lower electricity costs. Ohio is blessed with abundant, low shale gas. In fact, Utica shale gas is the lowest cost gas in the entire country. Low cost natural gas, when processed in a modern plant like OEC, results in an electricity energy cost (cents/kilowatt hour) that is 50 percent less than electricity energy produced from coal.
“By being part of a 13-state free market electricity system, Ohioans benefit from competitive forces that keep electricity energy costs low. This kind of competition is good for the homeowner and good for Ohio. In fact, in December 2016, a joint Ohio State University/Cleveland State economic study pointed out that when consumers have free choice to go out and select their low cost power supplier via ‘customer choice’ vs. having to buy electricity from a monopoly utility marketplace, Ohioans save $3 billion per year,” the material continues.
Siderewicz says it is for these reasons that his company’s partnership with the City of Oregon, City of Toledo, and Lucas County will benefit “the entire Northwest Ohio region.”
Siderewicz said that once both power plants are running, electricity can produced at a cost of 2½ cents per kilowatt hour and sold at a 25 to 30 percent savings off electricity produced and sold by a utility company. He added that residents here will have the “lowest cost electricity occurring in your backyard.”