After nearly two years of construction, AGL Energy (ASX: AGL) announced today the official opening of its $45 million co-generation plant in Altona, Australia. While the facility's 21 MW generation isn't big news, the plant's purpose is: according to AGL, it's the largest investment in industrial or manufacturing co-generation in more than 10 years.
The plant's 171 GWh of annual capacity are slotted for Qenos Pty Limited, the only polyethylene manufacturer in Oz. As of 2008, Qenos has operated as a joint subsidiary of China National Bluestar and The Blackstone Group. "AGL is well placed to assist the manufacturing industry, through its Energy Services business, to develop co-generation plants," said AGL Managing Director and CEO Michael Fraser in a statement today. "These provide the biggest potential for manufacturers to reduce greenhouse gases and improve energy efficiency."
According to the release, the new facility will cut carbon dioxide emissions by 100,000 a year, the equivalent of taking 25,000 cars off the road. In addition, steam generated from the plant will be used by Qenos in its manufacturing process, ensuring optimum efficiency at a cheaper price for Quenos and environment. Qenos CEO Jonathan Clancy noted that, for his company, "This is an investment in real sustainability."
Although financial details of the arrangement were not disclosed in the announcement, the two corporations have entered into a 15-year deal with the ability to extend an additional 10 years.
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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.
