Pepco Energy Services will design and build the CHP project for $81m, and will use biogas from an AWTP facility.

Construction will commence in August and is due to be completed in December 2014.

The CHP project will produce at least 14MW of electric power that will supply the Blue Plains facility with nearly 30% of the AWTP’s average power demand.

The CHP project will reduce DC Water’s greenhouse gas emissions by about 40%, as well as reduce the risk of increased disposal costs and provide a hedge against increases in future power costs.

The Blue Plains AWTP serves about 725m² of District of Columbia, Maryland and Virginia and has a capacity of 370 million gallons per day.

In addition to designing and building the CHP plant, Pepco Energy Services will provide on-site operations and maintenance services valued at about $89m over the 15-year contract term.