Four biomass plants sold to NY firm
A Quebec energy company is selling off its U.S.-based biomass plants, including four in Maine, to New York firm ReEnergy Holdings.
Montreal-based Boralex Inc. yesterday said it will unload five biomass electricity plants in Ashland, Fort Fairfield, Livermore Falls, Stratton and Chateaugay, N.Y., for $93 million, according to a press release. The plants have a combined capacity of 186 megawatts. The company said the sale will allow it to expand its holdings in other renewable energy segments, such as wind, solar and hydroelectric. A presentation on the sale highlights the move's "immediate shift to higher margin sectors." The company plans to invest the proceeds of the sale, about $81 million, in projects with long-term contracts in Canada and Europe. The boards of both companies have approved the transaction, and the deal is expected to close around Dec. 15 subject to regulatory approvals. The company's Staceyville plant is not part of the transaction and will remain permanently shuttered, according to the presentation.
ReEnergy has biomass facilities in Connecticut, New Hampshire and New York. The acquisition will bring the company's total employees to 260 and its total energy portfolio to 240 megawatts, according to a release from ReEnergy. The company earlier this year also signed an agreement with NewPage Corp. to buy its cogeneration energy assets at its Rumford mill for $61 million, but NewPage in an August report said that deal may fall through. A more recent report is not available, as NewPage has suspended filing quarterly reports as it restructures under Chapter 11 bankruptcy.
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