Nexterra Energy Corp., a manufacturer of advanced gasification systems said on Friday that it has received a major order from Johnson Controls Inc. (JCI) for a biomass gasification system at the U.S. Department of Energy's Oak Ridge National Laboratory in Tennessee.
The Nexterra biomass gasification system is part of an $89 million contract for Johnson Controls to undertake a wide range of building management and energy conservation measures at Oak Ridge National Laboratory or ORNL. The system will be delivered in late 2009.
As per the requirement of the contract, the Nexterra system would replace ORNL's existing natural gas steam plant by converting locally sourced woody biomass into clean burning syngas. Once operational, the system will reduce campus fossil fuel consumption by 80%.
Nexterra Energy noted that the installation of the new system would help ORNL to reduce its use of fossil fuel and to enhance its bioenergy capabilities at the practical and research levels. The entire Johnson Controls-ORNL project will save ORNL an estimated $8.7 million annually and reduce greenhouse gas emissions by more than 30 thousand tons per year.
JCI is currently trading at $32.52, up $1.32 or 4.23% on a volume of 1.739 million shares.
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