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PLAINS TWP. — Patrons do it often and Mohegan Sun Pocono is following suit by doubling down on a new cogeneration energy system.

The combined heat and power system fueled by natural gas is designed to reduce energy costs and cut carbon dioxide emissions.

It’s still in the design stage and construction should begin in the spring for an anticipated fall completion date, said Mike Bean, president and chief executive officer of Mohegan Sun Pocono. The estimated cost is $3 million and 30 percent of the funding will be in the form of a grant from the Commonwealth Financing Authority in Harrisburg.

The electricity and heat generated by the new system will supplement what’s already consumed in the casino and hotel and conference center and deal Mohegan a winning hand in the form of lower utility bills, cost savings and impact on the environment.

“It would be significant,” Bean said.

The natural gas extracted from the nearby Marcellus Shale is a clean-burning fuel used to make energy on-site rather than at a coal-fired power plant and transmitted from a distance over high-voltage lines.

“Once fully operational, the electricity and heating from the system is likely to reduce Mohegan Sun Pocono’s carbon footprint by 3,900 metric tons annually, the equivalent of removing 820 vehicles from the road, carbon sequestered from 3,200 acres of forest or the planting of 100,000 trees,” Bean said.

Mohegan Sun Pocono has teamed with UGI HVAC Enterprises Inc., of Reading, on the project. Mark Fennell, of UGI HVAC, said the key is how the energy generated from a single source is employed.

“They’re getting two benefits out of it,” Fennell said.

The system uses a natural gas-fueled internal combustion engine with an approximate 830 kilowatt output. The exhaust from the engine will be captured to heat water for use in the casino, Fennell added.

The setup has been in place at colleges and universities, hospitals, as well as in industrial, commercial and recreational applications, he said.

UGI Power Generation employs a similar system at its Hunlock Creek power plant. Natural gas from the Marcellus Shale is piped in to fuel two turbines to generate electricity. The exhaust heat is used to make steam to fuel another turbine at the plant that has an output of approximately 120 megawatts or 120 times greater than Mohegan Sun Pocono, Fennell said.

“The difference is they’re selling the electricity to the grid. Here they are reducing their load,” Fennell said. Mohegan Sun Pocono will cut its reliance on energy from outside sources by almost one quarter, he said.

Bean pointed out the new system will provide stability and a continuous source of electricity to the casino floor where 2,300 slot machines are located. In the past when there was an interruption, it took a second or two for the back-up generator to restore power, he said.

The project has an academic aspect to it. Engineering students from Penn State Hazleton have been investigating other alternative uses for the exhaust heat as part of their Senior Design Capstone project.

Fennell said the students are looking at whether it would make economic sense to run hot water down to the stables where it could be used to wash horses that participate in harness racing at The Downs at Mohegan Sun Pocono.

By Jerry Lynott

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Reach Jerry Lynott at 570-991-6120 or on Twitter @TLJerryLynott