ReEnergy Buys Five Biomass Power Plants for $ 93 Million
Date: November 7, 2011
Source: ReEnergy Holdings LLC
Renewable energy developer ReEnergy Holdings LLC (Albany, NY) is buying a portfolio of five biomass power plants from Quebec-based Boralex Inc. for $ 93 million. The facilities include a 40-megawatt (MW) facility in Ashland, Maine; a 36-MW facility in Fort Fairfield, Maine; a 40-MW plant in Livermore Falls, Maine; a 50-MW facility in Stratton, Maine; and a 20-MW facility in Chateaugay, NY, all of which are designed to consume woody biomass. “This acquisition is a significant step in our strategy to build an integrated solid fuel renewable energy facilities company in the U.S.,” said Larry Richardson, ReEnergy CEO. The transaction expands ReEnergy’s power portfolio to 240 MW and increases its employees to 260 operating out of four states. The sale is expected to close by the end of the year.
Boralex executives said during a conference call that they plan to redeploy the funds relatively quickly, investing in ready-to-build wind, solar and hydro projects in Canada and Europe.
November 7, 2011
ReEnergy Holdings to Acquire Biomass-to-Energy Portfolio in Maine and New York from Boralex Inc.
ReEnergy Holdings LLC, an Albany, NY-based renewable energy company, announced today that it has entered into an agreement to acquire a portfolio of five U.S. biomass energy-production facilities in Maine and New York from Quebec-based Boralex Inc.
The facilities to be acquired include: a 40-megawatt facility in Ashland, ME; a 36-megawatt facility in Fort Fairfield, ME; a 40-megawatt facility in Livermore Falls, ME; a 50-megawatt facility in Stratton, ME and a 20-megawatt facility in Chateaugay, NY. The facilities rely principally on forest residue to create renewable energy.
With this acquisition, ReEnergy will grow to approximately 260 employees in four states, and its total energy portfolio will expand to 240 megawatts.
Larry Richardson, Chief Executive Officer, said: “This acquisition is a significant step in our strategy to build an integrated solid fuel renewable energy facilities company in the U.S. We look forward to becoming corporate citizens in four communities in Maine and another community in the North Country of New York, and continuing to provide economic opportunity and clean, reliable, cost-effective renewable energy to those regions.”
Tom Beck, ReEnergy’s Chief Commercial Officer, said: “These facilities will complement our existing portfolio, provide a strong platform for future growth, and help us to forge stronger relationships with the harvesters in our communities who provide fuel for energy.”
The purchase price for the portfolio is approximately $ 93.0 million, subject to customary closing adjustments. The transaction is subject to confirmatory due diligence and regulatory approvals. Closing is expected by year-end.
About ReEnergy Holdings LLC
ReEnergy Holdings LLC, a portfolio company of Riverstone Holdings LLC, owns and operates facilities that use biomass and waste residues to produce renewable thermal and electric energy. ReEnergy was formed in 2008 by Riverstone Holdings LLC and a management team comprised of experienced industry professionals. ReEnergy currently owns and operates a 22-megawatt biomass facility in Lyons Falls, NY (ReEnergy Lyonsdale); a 31-megawatt tire-to-energy facility in Sterling, CT (ReEnergy Sterling); and two construction and demolition waste and waste wood processing facilities that service the eastern New England/Boston metropolitan area marketplace (ReEnergy Gateway/LL&S in Salem, NH, and ReEnergy Gateway/ERRCO in Epping, NH). The Company also has pending acquisitions in New York and Maine.