The Florida Public Service Commission approved a plan on Thursday to build a 100-megawatt biomass plant at the Gainesville Regional Utilities facility in Deerhaven.
The plant is a joint-effort between GRU and American Renewables, an energy plant developing company.
"The PSC has taken an important step today toward significantly expanding Florida's commitment to renewable energy," said Jim Gordon, American Renewables chief executive officer, in a press release. "The Gainesville Renewable Energy Center will bring reliable, cost-effective renewable energy to GRU customers and spur significant economic development in North Central Florida."
GRU and American Renewables are entering into a 30-year energy contract under which American Renewables will build, own and operate the facility, according to the release.
GRU will buy and use 100 percent of the plant's energy output, which will be generated by burning local leftovers from logging residue and wood processing plants.
The biomass plant will help keep GRU's facilities updated, as well as protect customers from rising fuel costs while providing long-term savings, said GRU General Manager Bob Hunzinger in the release. At first, customers may see a small increase in their bills, although it is expected that biomass energy will soon become less expensive than fossil-fuel alternatives, the release stated.
Construction is set to begin in December, although customers will not be directly influenced until late 2013, the release stated.
