Greentech Lead America: Eastman Kodak Company has signed
agreement with Recycled Energy Development (RED) under which RED will acquire, upgrade
and operate the utility infrastructure of Eastman Business Park (EBP), one of
the nation’s largest industrial complexes.
This agreement provides stability for EBP and its tenant
companies and supports the Park’s revitalization.
According to RED chief executive officer Sean Casten, the
company is also prepared to further invest in order to meet new environmental
standards (particularly the U.S. Environmental Agency’s Maximum Achievable
Control Technology standard for utility boilers).
RED is an industrial energy efficiency that helps
companies profitably reduce greenhouse gas emissions. Its leaders have
designed, owned or operated more than 200 energy recycling projects like the
ones at EBP. RED will soon invest millions to increase the Park’s energy efficiency
and utilities productivity in order to help attract new businesses and jobs to
the region while ensuring compliance with MACT and other pending environmental
regulations.
“Depending on final compliance and conversion plans, RED
plans to invest $40-80 million to convert the coal-fired power plant to natural
gas,” said Casten. “This will increase the cogeneration system’s efficiency,
allowing us to continue to supply reliable and economical utilities services to
the 37 tenants at Eastman Business Park, along with Kodak. These utilities
include electricity, steam, water, refrigeration, compressed air, and nitrogen,
as well as wastewater treatment.”
The EBP power plant utilizes highly efficient processes
to generate steam, electricity, and chilled water. The plant has an electric
generating capacity of 125 megawatts and also can deliver a similar amount of
thermal energy to EBP in the form of steam and chilled water.
“RED’s investment in Eastman Business Park is a critical
step in our collective efforts to revitalize the Park; it’s great news for the
community, for the tenants of EBP and for Kodak,” said Michael Alt, Director of
Eastman Business Park. “RED will work closely with Kodak and other major
tenants of Eastman Business Park to offer competitively priced, reliable and
sustainable services, to optimize energy efficiency on site, and to meet
ongoing regulatory obligations.”
Alt added that RED will join Kodak in working with
officials across all levels of government in what Kodak sees as a multi-tiered
plan to grow Eastman Business Park. According to Alt, ensuring the long-term
stability of the utilities infrastructure is a crucial step in this effort.
“RED thanks New York State for its cooperation and looks
forward to continued efforts to capture innovation and growth in Eastman
Business Park,” said Casten. “By supplying low-cost, highly efficient energy,
RED believes EBP will serve as a model for how industrial facilities across the
country can meet MACT requirements.”
The Kodak-RED agreement is subject to Court approval. It
also requires regulatory approvals and permitting, including from the New York
State Public Service Commission. The agreement’s financial terms include about
$10 million total in cash paid to Kodak for utility assets.