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Monday, June 22, 2009 9:59 PM CDT
EIU board gives the OK for Renewable Energy Center
By ROB STROUD, Staff Writer
rstroud@jg-tc.com
CHARLESTON — The Eastern Illinois University Board of Trustees took action Monday on getting a Renewable Energy Center and other energy conservation measures constructed and financed.
In addition, the board heard that Illinois Gov. Pat Quinn signed legislation Monday that will enable Eastern to pay off the estimated $80 million in projects over time with dollars saved by reducing energy consumption.
EIU interim Vice President for Business Affairs Paul McCann told the board that the Renewable Energy Center and the other energy conservation measures, including possible wind turbines, together will be the “largest project in campus history” in terms of the dollar amount.
The energy center will replace EIU’s circa-1925 coal-fired power plant. The new plant will be a “biomass gasifier” that will fill EIU’s heating and cooling needs by burning nontreated wood chips obtained as lumber industry by-products, officials said. EIU has reported that burning wood, rather than coal, will reduce overall air emissions.
EIU President Bill Perry said the energy center will provide a sustainable solution to the long-term problem of replacing the aging and unreliable coal-fired power plant.
Board members voted unanimously to hire Honeywell International, Inc. of Arlington Heights to oversee the construction of this new power plant off the northwest corner of Illinois Route 130 and Edgar Drive and the related measures at a cost not to exceed $80 million. The audience in the EIU Grand Ballroom applauded the vote.
The project is designed to be self-funded by energy savings over a period not to exceed 20 years. Mattoon native and EIU alumnus Cameron Schilling, an aide to Quinn, announced to the board that Quinn signed legislation letting EIU borrow money for the projects without raising tuition or fees or taking money from the state.
McCann said Honeywell guarantees that EIU will attain annual energy or operational cost savings equal to or greater than the annual cost of financing the project. He said annual energy savings of less than the guaranteed amount would be supplemented by Honeywell and that supplement would be used to repay amounts financed.
In addition, McCann said Honeywell will provide EIU with an insurance policy from a national insurance company to further strengthen the company’s guarantee.
“We think we have done an excellent amount of protection for the university,” McCann said.
Board members also voted unanimously to pursue up to $90 million in financing through U.S. Bank National Association for the energy conservation projects. McCann said the final total for the projects should be less than the $90-million figure, but having this amount of financing available will give EIU room to negotiate on the projects.
McCann estimated there is $16 million in deferred maintenance that would need to be done at the current coal-fired power plant just for it to operate functionally at its 1920s design.
“What we would like to do with this technology is bring us up into the next century,” McCann said of the Renewable Energy Center.
EIU leaders outlined details of the new power plant during public meetings in November and unveiled revisions in April made based on public concerns over the original design. The new design includes more brick and glass on the exterior, instead of metal, and two roof-level storage silos that will eliminate the need for a 120-foot-high bucket elevator.
EIU board member Robert Webb said the new power plant could benefit area farmers eventually by burning corn stalks, cobs or prairie grass purchased from their land. He said the plant would have benefits in the near term through the creation of an estimated 450 construction jobs.
“That would be a major stimulus to the economy of the county,” Webb said.
After the meeting, McCann said construction of the Renewable Energy Center may start as early as Oct. 1 and would then be completed within two to two-and-a-half years.
Contact Rob Stroud at rstroud@jg-tc.com or 238-6861.
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