‘Green electricity’ proposed to meet NMI need

Another solution to the Commonwealth’s power crisis was proposed yesterday to government and business officials, while the power plant privatization project remains hanging in balance.

Allen N. Sharpe, chief executive officer of Biomass Investment Group Inc., presented his proposal to provide “green electricity” under a power purchase agreement to the Northern Marianas.

For an estimated investment amount of $50 million to $60 million, Biomass would construct a new power plant in CNMI that would run on energy from a crop called e-grass.

Sharpe said the government could make huge savings from the project. Biomass is planning on selling electricity to the government at 12 cents per kwh.

According to the government, the actual cost of power generation on Saipan is between 30 and 33 cents per kwh. Residential consumers are charged 11 cents per kwh while government and business consumers are assessed 16 cents per kwh of power used. This does not include the fuel surcharge amounting to 3.5 cents per kwh.

“[The Commonwealth Utilities Corp.] is operating at a loss. If we were to supply power to Saipan, CUC could at least eliminate that loss,” Sharpe said.

He added that the same proposal had been presented to the CNMI’s neighboring countries and islands, including the Philippines, Guam, and Palau.

Currently, Biomass is constructing two power plants, each with capacity of 120 megawatts, in Florida. Plans are also underway to build a similar facility in Mexico, Sharpe said.

He disclosed that the firm was planning on growing the crop in the Philippines, where there is enough land for the amount of crop needed to generate fuel. It takes about 1,000 acres of e-grass to produce 10 megawatts of electricity.

Saipan’s power demand is about 70 megawatts a day.

Sharpe added, however, that the existing power generation facilities on Saipan would have to be maintained even when a new plant has been built. The existing plant, he said, would be used at times when the new plant is undergoing regular maintenance.

Lt. Gov. Diego T. Benavente, one of the officials who attended Sharpe’s presentation, said the project was a good opportunity for the CNMI.

“Everyone should be excited about this opportunity. We continue to be concerned about the cost of fuel. To have folks come in to offer us alternative is exciting,” Benavente said.

He said however that the proposal required major review and discussion, particularly in light of the ongoing power plant privatization program.

Other officials present at the meeting included the governor’s special assistant for trade relations Richard Pierce, the governor’s CIP management consultant Chuck Jordan, Strategic Economic Development Council co-chair Bob Jones, Marianas Visitors Authority chair David Sablan, MVA managing director Vicky Benavente, Hotel Association of the Northern Mariana Islands chairwoman Lynn Knight, and Saipan Chamber of Commerce secretary Jay Jones.