Dominion Virginia Power has begun operation of a new energy facility in St. Paul, Va., that uses waste wood and coal as well as new coal as feedstock.

The Richmond, Va.-based utility said in a news release that the Virginia City Hybrid Energy Center can generate 585 megawatts of electricity, enough for more than 146,000 homes. The circulating fluidized bed project cost $1.8 billion.

Dominion Virginia said the facility is among the cleanest coal-fired power stations in the United States in terms of air emissions.

"Virginia City is an important addition to our balanced, diverse energy mix that has kept our rates reasonable for our customers. The use of low-cost waste coal and biomass will result in the unit having favorable economics, bringing savings to customers," said David Christian, CEO of Dominion Generation, which operates the company's power stations.