Laidlaw Energy Group, Inc. currently has a number of biomass energy projects under active development and various other projects under consideration. The Company utilizes the substantial business contacts of its executives in the energy and energy finance areas to ensure that it sees development and acquisition opportunities as they become available. The Company is highly selective in the development opportunities it choses to explore, choosing to pursue only those opportunities that meet its stringent criteria and hurdle rate for projected risk-adjusted equity returns.
The development opportunities that the Company targets often involve assets that can be acquired on a discounted basis, due to their non-operating status. This allows the Company to potentially develop projects with a lower capital cost than that of a newly constructed facility. The lower capital cost allows for the possibility of better equity returns with more modest capital requirements than newly constructed facilities.
"Retooling" projects of this nature come with their own set of risks and the Company's executives work to mitigate such risks contractually with credit worthy counter parties, such as equipment vendors and EPC contractors. As a general goal, the Company seeks to develop such retooled biomass projects for approximately one-half to two-thirds the cost of a newly constructed facility with comparable capacity.
Susanville California Project
Laidlaw has executed a final Purchase and Sale Agreement to be a 100% equity holder in a 14-megawatt biomass-energy power plant located on a 40-acre site in Susanville, California. The sellers of the Susanville plant are Renergy, Inc and Nature Energies, Inc., whose ultimate parent is Hanalei Renewables, a successful French renewable energy company.
Laidlaw will be refurbishing the Susanville plant in order to bring the former biomass plant back online and able to sell renewable energy into the power market. The process of refurbishing the facility will take approximately 12 months and cost approximately $20 million. During the construction of the facility, Laidlaw estimates it will employ approximately 50 temporary workers, and once operational 20 full time positions will be created.
Laidlaw estimates that once the plant is operational it will generate revenues of approximately $8-$9 million per annum. Laidlaw is currently in discussions to sell the plant’s energy under a long-term contract.
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New Bedford Combined Heat and Power Project
Laidlaw has acquired and is currently developing a unique energy project at the former Polaroid Facility in New Bedford, Massachusetts that combines a combined heat and power system with a photovoltaic solar array. The Company has finalized a long-term lease / purchase agreement with the property owners, Multi-Layer Coating Technologies, LLC, (“MCT”), an affiliate of the private equity firm The Watermill Group (www.watermill.com). MCT purchased the former Polaroid manufacturing plant, which consisted of a Power Plant that supplied heat, chilled water, and compressed air to two large buildings. MCT then sold one of the main buildings that housed specialized coating machinery to Konarka Technologies, Inc. (www.konarka.com), a leading manufacturer of flexible thin film photovoltaic material.
The project will be developed in stages, starting with the lease and operation of the existing power plant that currently provides energy to Konarka. During this period the Company is exploring options to improve efficiencies and reduce operating costs. The second phase of the project will be focused on installing an ultra-efficient combined heat and power system that would meet the tenant’s thermal energy and electricity needs.
This very exciting project combines the best of a number of technologies in a manner that makes use of best of class technologies, creates high operating efficiencies, tremendous savings for the tenants and attractive returns for investors.
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"Each of us has a part to play in a new future that will benefit all of us. As we recover from this recession, the transition to clean energy has the potential to grow our economy and create millions of jobs -– but only if we accelerate that transition. Only if we seize the moment. And only if we rally together and act as one nation –- workers and entrepreneurs; scientists and citizens; the public and private sectors."
-PRESIDENT OBAMA, JUNE 15, 2010
The alternative energy sector has by far the most well funded experimental technology applications being researched today. Just as advacements must be made in the medical field as human beings progress as a species to ensure our survival, so must at an equal pace the advacements and technologies of alternative green energy solutions be researched and plans to change to a non-petroleum economy be executed.
