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Duke Energy partners with Duke University on 21-MW cogeneration plant

announced May 9that one of its North Carolina subsidiaries and Duke University will partner ona 21-MW power plant to be located on the university's campus in Durham, N.C.

Undera 35-year agreement, subject to approval by the North Carolina Utilities Commission,Duke Energy Carolinas LLCwill own, build and operate the natural gas, combined heat and power facility, accordingto a news release. The $55 million project is expected to reduce the university'scarbon emissions by approximately 25%.

The proposalcalls for the plant to use the waste heat created from generating electricity toproduce thermal energy and steam for the university, Duke Energy said in the newsrelease. "The electric power would be put back on the Duke Energy electricgrid to serve the university and nearby customers," the release stated.

DukeEnergy noted that in addition to the 21 MW, "the facility would be capableof producing roughly 75,000 pounds per hour of steam, which would be sold to DukeUniversity for heating water among other things."

The cogenerationfacility would be connected to an existing substation on the campus that servesDuke University, Duke University Hospital and other customers, the news releasestated.

DukeEnergy Carolinas will seek a certificate of public convenience and necessity forthe project, which is expected to come online in 2018, if approved."This project will provide a cleaner and more diverse energy mix for the communityand provide the value of thermal energy for the university," David Fountain,Duke Energy's North Carolina president, said in the news release. "The innovativeapproach provides multiple benefits to a large customer like Duke University andis a cost-effective generation asset for Duke Energy and our customers in NorthCarolina."