Lakeland Electric will become the first to test a new liquid nitrogen power generation system on a utility scale.
City commissioners unanimously approved a power purchase agreement with Tennessee-based American Independent Power LLC to pilot a new 5-megawatt liquid nitrogen generator in North Lakeland.
There are 6 primary elements of the LN2G system.
LN2 Production (facilitated by a commercial Cryo Production PSA system)
Water Chiller/Re-circulation Unit (with storage capacity depending on system size)
Cryo-Liquid Storage (Commercial Liquid Storage Tank(s)
Heat exchange/Vaporization (HTF/Molten Sodium storage plus Proprietary vaporizer)
Commercial Generator (with proprietary Compressed Gas Drive)
Proprietary Gas Recirculation “plumbing”
Mike Dammer, LE’s manager of emerging technology, said the municipal utility made a connection with American Independent Power after Tampa-based Block Energy canceled its contract to build 77 homes on a solar-powered microgrid in November 2023.
Under the agreement, American Independent Power will build a 5-megawatt liquid nitrogen generation pilot product at Lakeland Electric’s existing Socrum substation at 8436 U.S. 98 N.
Dammer said the company has a LN2G Power plant, which utilizes a trade-secret process to use liquid nitrogen to power a traditional generator through thermal differences.
The system works by utilizing thermal solar energy, generated by troughs filled with a thermal medium that will collect heat from the sun on one side, according to Dammer. It is not photovoltaic cells like the solar panels many residents have become accustomed to seeing on houses.
“It’s designed in such a way that the thermal medium has the ability to transfer heat over a long period of time,” Dammer said. He compared it to how a casserole dish doesn’t immediately cool after being taken out of an oven.
The thermal-capturing liquid is placed opposite liquid nitrogen, a cryogenic liquid often used for rapid freezing. Dammer said the temperature difference in the two substances is what helps drive the engine, spinning like a traditional generator. It will continue to function as long as there remains a temperature difference between the thermal medium and liquid nitrogen, regardless of whether the sun is out or not.
“This is a solar-powered system that will actually run 24/7. That’s a big win for us right there,” Dammer said. “It’s not intermittent capacity. It’s capacity that will be there day-in and day-out.”
The pilot plant will be designed, built, operated and maintained by American Independent Power. Lakeland Electric estimates it will spend less than $100,000 to connect the generation system to its existing grid, distributing energy created directly into the system.
It will take up approximately a half-acre of vacant land. By comparison, Dammer said a traditional solar photovoltaic system with solar panels needs to cover about 5 acres per megawatt capacity.
“The scale of what we can do with this system still utilizing thermal solar is going to benefit us immensely when it comes to space,” he said.
Dammer estimated that the 5 megawatts the liquid nitrogen generator could produce is capable of powering approximately 5,000 homes.
Under the agreement, Lakeland Electric will pay $44 per megawatt-hour, or 1,000 kilowatts, of energy produced. If the station functions at maximum capacity, the municipal utility will pay more than $1.9 million per year to receive 43,800 megawatt hours.
Dammer said the risk to the city is minimal for taking part in the pilot program. It will be the first time American Independent Power is deploying this technology on a utility scale.
“If the system doesn’t work as advertised, if there’s any problems, we’re not out anything other than buying power,” he said.
A functional version of these generators has been used by American Independent Power in Tennessee for more than 17 years, which Dammer said he has witnessed with his own eyes.
“I can’t find the holes in this project, which is why I want to build it. I want to go forward with it and I want to see it in operation,” Dammer said. “If it does deliver as promised, and I’ve found nothing to indicate to me it won’t, this could be potentially a large arrow in our quiver going forward for Lakeland Electric.”
It’s estimated it will take between seven to nine months for American Independent Power to build the generator, depending on the time it takes to get permit approvals. It’s expected to be functional by September 2026.
Once the generator is functional, Lakeland Electric will begin a 15-year contract to purchase all energy generated, with one 10-year extension possible. The contract can be canceled with a year’s notice for any reason by either party.