Sherman soon could be home to a highly efficient and clean 500-megawatt natural gas-fired electricity plant. Sherman Economic Development Corp. entered an agreement with Panda Energy Inc. Monday to build a $300 million, combined-cycle natural gas fired power plant.
Panda's is likely the largest building project in Grayson County history. In return for Panda's investment, SEDCO agreed Monday to give Panda 204 acres in its industrial park and $2 million in cash incentives. "We're just really excited about it," said SEDCO Board of Directors Chairman Joe Fallon. "They still have some financing and regulatory approvals to obtain, but it is really going to be great for the Sherman economy, mainly from the $300 million increase to the tax base ... From everything we're hearing and have looked at it's a very efficient, really clean-burning natural gas plant we're building."
Fallon said it is the largest building project they've found in Grayson County history.
SEDCO President John Boswell said the city of Sherman and Grayson County are still considering their economic development incentives for the plant. Such incentives from the county, Grayson County College and cities often come in the form of tax abatements. SEDCO acted quickly because it was important for Panda Energy Inc. to be able to go to the Electricity Reliability Council of Texas to begin discussions for building the plant, Boswell said. ERCOT controls the state's power grid. Panda also must gain permits to build and operate the plant from the Texas Commission on Environmental Quality.
Boswell said the SEDCO board approved giving Panda the land, which the company first will pay for and then SEDCO will reimburse; and $2 million based on the nearly $300 million investment. The incentives were based on investment and not the number or quality of jobs created. About 25 full time, permanent jobs should be created, Boswell said. The press release quotes Boswell as saying that building the plant will create 300-400 construction jobs and 32 jobs will be created indirectly supporting the plant.
The generating plant will be built in SEDCO's Northgate Park III industrial park, partially on 40 acres the board purchased in January for $400,000. Boswell said Panda will pay for the land and when the plant is built and the company receives a certificate of occupancy from the city, it will be reimbursed. The land, according to the land option contract between Panda and SEDCO, is valued at $3,600 per acre or $734,400. The park is west of U.S. Highway 75 and south of FM 1417. Part of the land is within Blalock Industrial Park.
A press release from Panda quotes Sherman Mayor Bill Magers as saying, "Panda representatives have been actively engaged with community leaders since the beginning of the site selection process. 'They've done a good job answering questions and building support for this project. Panda has also shown that they intend to be a good corporate citizen of our community.'"
Boswell said this is one of the best deals SEDCO has made, with incentives being less than 1 percent of the investment.
Panda officials said in a press release that the natural gas-fueled generating station would be able to supply the power needs of approximately 400,000 homes in North Texas and is expected to bring more than $248,000,000 into the area's economy over the next 10 years.
"The Panda Sherman generating station will utilize the latest in proven technology and will be one of the cleanest power plants in the nation," the press release states. "Air emissions at the facility will be controlled to among the very lowest of any power plant in Texas."
Combined cycle generating plants produce more energy than traditional plants do with a unit of fuel. The Northwest Power Planning Council explains that a combined-cycle gas turbine power plant consists of gas turbine generators equipped with heat recovery steam generators to capture heat from the gas turbine exhaust. This steam powers additional turbines that produce more electricity. Thus, what heat once was released back into the environment now is used to produce electricity.
This combined cycle produces power at about 50 percent of the chemical energy of the gas that powers it.
Combined cycle gas turbines emit nitrogen oxides, according to the NPPC and carbon monoxide. If fuels other than gas, such as fuel oil, were used, the plant might emit other chemicals, such as sulfur dioxide.
"In 2004, the company brought its development expertise to the biofuels industry originating several large-scale ethanol projects," Panda's press release states. "Newsweek Magazine subsequently recognized Panda, in 2005, as one of the ten most eco-friendly energy companies in America for developing the Hereford ethanol facility — the largest biomass-fueled ethanol refinery in the United States with one of the lowest carbon footprints of any similar-sized facility in the nation. In 2006, Panda Energy founded and transferred responsibility for its ethanol projects to Panda Ethanol, later establishing the company as a separate public entity."
Panda also owns combined-cycle natural gas fired generating plants in Paris, Odessa, Guadalupe, Oneta, Okla., Gila Bend, Ariz., El Dorado, Ark., Rosemary, N.C., and Brandywine, Md. The company owns a small hydroelectric plant in Bhoti Koshi, Nepal, and a coal-fired plant in Luannan, China. The Sherman plant would be one of its smaller natural gas plants. The company also owns natural gas and electricity distribution lines.
“Panda Energy is continuing its work to build out a fleet of new generating stations that will help meet the rising demand for clean, low-priced electric power,” said Robert Carter, chairman and chief executive officer of Panda Energy. “North Texas officials are clearly looking toward the needs of tomorrow, and we look forward to working with them to enhance the future reliability of the region’s power supply.”
Sherman Mayor Bill Magers said Panda representatives have been actively engaged with community leaders since the beginning of the site selection process. “They’ve done a good job answering questions and building support for this project. Panda has also shown that they intend to be a good corporate citizen of our community.”
“I can’t think of another company that has worked harder to bring something good to the city of Sherman than Panda Energy,” said John Boswell, president of the Sherman Economic Development Corporation. “This power plant will have a significant impact on the area’s economy for years to come. It will expand the tax base, enlarge payrolls and drive revenues for contractors, suppliers, engineering firms, hotels, restaurants, retailers and a host of other businesses. The plant will create an estimated 300-400 construction jobs, 25 direct jobs to run the facility and 32 indirect jobs to support it. This is good for the city of Sherman.”
The generating station will be located on a 200-acre site at the Progress Industrial Park. Construction will take approximately 24 months and is dependent upon financing, regulatory approvals and other conditions.
Panda Energy previously announced that it has filed for an air permit to build a 1,000-megawatt combined-cycle power plant in Temple, Texas.
Panda Energy was founded in 1982, has developed, financed, built and operated large-scale energy facilities both domestically and internationally. The company built the two largest gas-fueled, combined-cycle independent electric generation facilities in the United States totaling 4,500 megawatts of generating capacity. Altogether, the company has raised over $5.9 billion to develop and build more than 9,000 megawatts of generating capacity.
Newsweek Magazine, in 2005, recognized Panda as one of the 10 most ecofriendly energy companies in America for developing the Hereford ethanol facility — the largest biomass-fueled ethanol refinery in the United States with one of the lowest carbon footprints of any similar-sized facility in the nation. In 2006, Panda Energy founded and transferred responsibility for its ethanol projects to Panda Ethanol, later establishing the company as a separate public entity.
Your Ads At Here
