IRVINE — Hadson Power Systems in Irvine and Virginia-based Westmoreland Energy Inc. said Wednesday that they have received the federal and state approvals needed to go ahead with their joint venture to build a 165-megawatt coal-fired cogeneration plant in Roanoke Rapids, N.C.
The $285-million project, known as Roanoke Valley, will sell electricity to North Carolina Power and steam to Patch Rubber Co., the rubber products unit of British-based Myers Industries.
The partners are completing arrangements with several offshore banks to finance the project, said James P. Kelly, president and chief executive of Hadson Power, an Irvine unit of Oklahoma City, Okla.-based Hadson Corp. When completed, the plant should be able to generate enough power for a city of about 100,000 people, he said.
Proceeds from the sale of electricity will be divided equally between Hadson Power and Westmoreland Energy, Kelly said. This is the fifth project that the two companies are jointly developing, he said.
As the primary developer, Hadson Power will provide engineering and construction work. It will also operate and maintain the plant through its subsidiaries.
Westmoreland Energy will supply about 500,000 tons of coal annually for a 16-year period as well as provide technical and financial support, said Charlene M. Smith, a spokeswoman for Westmoreland Coal Co., the Philadelphia-based parent of Westmoreland Energy.
Construction is scheduled to start in May, and the plant is expected to begin operating in mid-1994, Kelly said.
Ralph Daley, a Hadson Power executive, will oversee the plant's development.