Sparta, N.J. -- Jan. 27, 2009 – Sparta Township today announced that it has entered into an agreement with Riverbank Power Corporation, an independent power producer specializing in clean hydroelectric power, to begin the testing and studies necessary to develop an underground hydro generation facility.  If successful the facility at Limecrest Quarry in Sparta, referred to as Aquabank™, will be built at no cost to Sparta or its citizens. 

            The power project would be built after the completion of feasibility studies, formal environmental assessments and geological testing is complete.  Construction would then take approximately four years and the facility is expected to be in service by 2015.  Once it is operational, the facility COULD generate several million dollars in annual revenue for Sparta Township over a lease period of 100 years.

                     Riverbank will invest $2 billion in the project, creating an estimated 1,000 construction jobs for four years, and 50-75 full-time positions when fully operable. Additional spin-off jobs are expected during both construction and operation of the facility.

Once this project is completed, it will utilize the water in the quarry to generate electricity through a closed loop system.  The quarry water will pass through underground turbines and then be returned to the surface.  The resulting electricity will in turn be supplied to a regional electric grid supplying several states in the Northeast. The facility will improve the reliability of New Jersey’s power system and help the State fulfill its recently announced goal to achieve 30% of its energy from renewable sources by 2020. The project will not affect the pristine quality of the water on the site.  

Once operational, the agreement with Riverbank provides Sparta Township with:

·        $5 million in annual revenue for a lease period of up to 100 years through taxes and rent royalty. 

·        A one-time bonus of $2 million, earmarked specifically for a Community project. 

·        Full access to the water for potable use if required.

·        Minimum surface level disruption.

“It is hoped that this hydroelectric project, once completed, will be the jewel of Sparta that enhances real estate values as well as drawing in strong commercial ratables that will positively impact real estate taxes as well.  Projects such as this have also created a stream of tourism due to its unique nature,” said Brian Brady, Mayor of Sparta. “Renewable energy projects will promote energy independence and ensure the creation of ‘green jobs’ in the State of New Jersey. We have been working on this project with the developer for the past six months and appreciate their commitment to develop this project in an environmentally responsible manner. We are also impressed with the significant resources brought to bear by the developer in order to execute this project.”

Aquabank™ utilizes hydro-pumped storage generation technology. Pumped storage is a proven technology and consists of two water reservoirs, an upper one and a lower one. In the Sparta proposal, the upper reservoir will be the Limecrest Quarry, providing an isolated source of water. The lower reservoir and powerhouse will be built 2,000 feet underground. This design is referred to as a closed-loop system. The water is recycled back and forth between the upper and lower reservoir, therefore minimizing the impact on the environment. The ground level facilities, consisting of a substation, water-intake structure and control building, will be developed on less than 10 acres, thereby minimizing any surface level disruption. “We avoid many of the environmental challenges and visual impacts of traditional hydro storage by constructing almost the entire facility underground,” said John Douglas, President and CEO of Riverbank.

For further information about the project, please visit Riverbank’s website at www.riverbankpower.com, or www.spartanj.org.