The City Commission for the public power community Lakeland, Fla., on Sept. 2 approved a power purchase agreement with American Independent Power LLC for a 5-megawatt Liquid Nitrogen Generation Pilot Project.
The purpose of this pilot project is for AIP to provide Lakeland Electric with a distributed energy resource, while enabling modeling of the technology at utility scale based on API’s unique proprietary liquid nitrogen generation technology.
Pursuant to this agreement, Lakeland Electric will purchase all power generated from AIP’s facility.
Specifically, AIP proposes to utilize thermal solar collectors to generate the high-temperature side of AIP’s engine and cryogenic nitrogen for the low-temperature side.
This thermal differential is what drives the engine and can do so with a much smaller solar footprint than traditional photovoltaic solar, which provides Lakeland Electric with the ability to use a smaller half-acre area available at the Socrum Substation.
Mike Beckham, General Manager of Lakeland Electric, noted that the public power utility previously said that it would pursue emerging technologies and renewable energy and this project represents both.
“This looks very promising,” he said at the City Commission meeting. The project has “high promise and very low cost on the front end and it could be a significant part of our portfolio,” he added.
The initial term of the agreement will start upon commercial operation of the facility, which is anticipated to occur on or about September 2, 2026, and continue for a period of 15 years unless otherwise terminated in accordance with the Agreement.
In accordance with the Agreement, AIP will develop, build, operate, and maintain the facility at its sole cost and expense.
Lakeland Electric will purchase all of the power generated from the facility at a rate of $44.00/MWh. The maximum annual payment for power, based on 100% availability and generation of AIP’s facility, would be $1,927,200.00 for 43,800 MWh per year.
