Austin’s $2.3B woody biomass deal not so great anymore

The nation’s largest biomass plant has gone online and it will supply all its renewable power to Austin Energy, but the same deal would probably not be approved today.

The Austin City Council approved the $2.3 billion, 20-year contract in August 2008 for all the output from the Nacogdoches Generating Facility — a 100-megawatt, wood-waste-fueled biomass power plant.

“When the contract was initially brought to Council it appeared to be a good deal to help us reach our adopted goals for renewables,” City Council Member Mike Martinez said.

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