NPPD signs letter of intent tied to procurement of renewable energy resources
January 6, 2021
by Paul Ciampoli
APPA News Director
January 6, 2021
In order to facilitate Monolith Materials’ proposed $1 billion expansion of its Olive Creek facility near Hallam, Neb., Nebraska Public Power District and Monolith have signed a letter of intent outlining their intention to procure enough renewable energy resources to generate two million megawatt-hours annually.
NPPD President and CEO Tom Kent said NPPD will solicit bids for the project through a request for proposals (RFP) for new wind or solar generation, including energy storage, through a power purchase agreement.
The news was unveiled on Jan. 4 by Nebraska Gov. Pete Ricketts and representatives of NPPD, Monolith Materials, and Norris Public Power District during a joint announcement regarding the facilitation of a significant addition to the renewable energy landscape in the state.
Kent noted that the approximately two million megawatt-hours of generation would create a sufficient number of renewable energy certificates (RECs) to meet 100 percent of Monolith’s average annual energy usage and meet the company’s environmental and sustainability goals.
“While we are adding additional generation resources, NPPD will continue to maintain our highly competitive rates, which was one of the reasons Monolith moved its operations to Nebraska,” he said.
Kent noted that to reach that generation figure, the renewable resource projects could be comprised of wind, solar, or a mix of the two.
NPPD will be securing the generation resources and power to the facility will be delivered by Norris Public Power District, a wholesale customer of NPPD.
Olive Creek 1 (OC1), Monolith’s first production facility, is already utilizing RECs to offset 100% of its electricity needs.
With the new agreement, Monolith plans a mix of solar and wind generation resources along with battery energy storage to provide sufficient renewable power to offset its OC1 and OC2 operations in the future.
NPPD is expecting to enter into power purchase agreements by Sept. 1, 2021, with commercial operations expected to begin no later than Dec. 31, 2025.
NPPD plans to issue the request for proposals in March 2021 and a shortlist will be developed for further negotiations.
Additional details about Monolith Materials are available here.