Laidlaw Completes Acquisition of Berlin, New Hampshire Pulp Mill Facility and Closes Related Financing for 66 Megawatt Biomass Energy Project
New York, New York--(BUSINESS WIRE)-- January 5, 2009—Laidlaw Energy Group, Inc., through its affiliate, Laidlaw Berlin BioPower, LLC (“Laidlaw”), announced today that it has completed the acquisition of the former Fraser Paper pulp mill site where it has been engaged for the last two years in the development of a 66 megawatt biomass-to-energy project, along with the requisite financing for the development of the project.
“The complex history of the facility, which has been an industrial site for over 100 years, along with the many complexities associated with a project of this size and scope added significant time to our acquisition and financing negotiations,” stated Michael Bartoszek, Laidlaw Energy President and CEO. “We are pleased to have concluded this transaction, which will allow these assets to be put to good use in support of clean energy and the economic recovery of the North Country,” stated Bartoszek.
The Berlin Project involves the conversion of the boiler and related equipment situated at the former Fraser Paper pulp mill site into a highly advanced biomass-to-energy project. Power from the Berlin Project is expected to be sold to the Public Service Company of New Hampshire (“PSNH”) pursuant to a long-term agreement. Laidlaw announced in September that is has reached agreement with PSNH on the material terms of a contemplated 20 year power purchase agreement.
“The development of new native sources of renewable energy is essential
for New Hampshire’s energy future,” said Gary Long, PSNH president and
chief operating officer. “The purchase of power from the Berlin
Project will help us to meet the requirements of the state’s Renewable
Portfolio Standard and add to our portfolio of CO2-neutral energy
sources.”
“Now that the acquisition and financing have closed, the next step will be to apply for our permits with the New Hampshire Environmental Facilities Site Evaluation Committee,” stated Lou Bravakis, Laidlaw’s Vice President of Planning and Development. The permitting process if expected to take nearly a year. The projected commencement of commercial operations is currently slated for late 2010.
The Berlin Project is expected to utilize approximately 700,000 tons of clean wood biomass chips per annum and is expected to directly employ 40 skilled workers and create or support over 500 indirect jobs associated with wood chip supply and transportation. Requiring a capital investment of over $100 million, the 66 megawatt plant is expected to be among the largest and most environmentally advanced biomass-energy plants in North America.
Laidlaw Reaches Agreement with Public Service Company of New Hampshire or Power Purchase Agreement for New Hampshire Biomass Project
MANCHESTER, NEW HAMPSHIRE--(BUSINESS WIRE)-- September 29, 2008—Laidlaw Energy Group, Inc. (Ticker Symbol “LLEG”), through its affiliate, Laidlaw Berlin BioPower, LLC (“Laidlaw”), announced today that it has reached agreement with Public Service Company of New Hampshire (“PSNH”) on the material terms of a contemplated 20-year power purchase agreement for Laidlaw’s Berlin, New Hampshire Biomass Energy Project (the “Berlin Project”). The agreement between the parties contemplates the sale of 100% of the Berlin Project’s electric output, capacity and renewable energy certificates to PSNH over the 20-year term. The Berlin Project is expected to have a gross capacity of 66 megawatts, making it one of the largest biomass-energy plants in North America.
Commenting on the arrangement, Laidlaw President and CEO Michael Bartoszek stated, “This is an important milestone in the development of the Berlin Project. Having a guaranteed source of revenue over the term of this agreement from a highly credit-worthy customer like PSNH adds tremendous value to this project. We look forward to being an important part of New Hampshire’s energy future as the state shifts toward renewable electricity generation to meet its Renewable Portfolio Standard and greenhouse gas commitments.”
The agreement between the parties is subject to the execution of a definitive power purchase agreement, as well as approval by the New Hampshire Public Utilities Commission.
“The development of new native sources of renewable energy is essential for New Hampshire’s energy future,” said Gary Long, PSNH president and chief operating officer. “The purchase of power from the Berlin Project will help us to meet the requirements of the state’s Renewable Portfolio Standard and add to our portfolio of CO2-neutral energy sources.”
About the Berlin, NH Biomass-Energy Project
The Berlin project involves the conversion of the former Fraser Paper pulp mill site into a highly advanced biomass-to-energy project that is expected to export approximately 60 megawatts of renewable energy to the New England power grid and utilize over 700,000 tons of clean wood biomass chips per annum. The project involves a capital investment of approximately $100 million and is expected to directly employ 40 skilled workers and create over 500 indirect jobs. Once completed, the plant is expected to be among the largest and most environmentally advanced biomass-energy plants in North America.
About Public Service Company of New Hampshire
Public Service of New Hampshire is the Granite State’s largest electric utility, serving more than 490,000 homes and businesses. The company is keenly interested in efforts to support new sources of renewable energy that complement New Hampshire’s unique environment. In 2006, PSNH developed, with the support of a number of partners, Northern Wood Power – a project that replaced a 50 megawatt coal boiler with a state-of-the-art 50 MW wood boiler at Schiller Station in Portsmouth, NH. The U.S. EPA cited the successful collaboration in presenting Northern Wood Power with the EPA Clean Air Excellence Award in 2008. PSNH.com
About Laidlaw Energy Group
Laidlaw Energy is engaged in the development of independent power plants that generate electricity from renewable resources, with a particular emphasis on biomass power. Laidlaw Energy's mission is to build and manage a profitable portfolio of biomass facilities through the development of new facilities and acquisition of existing facilities, and in so doing become the leading supplier of biomass power in the United States. Laidlaw Energy is headquartered in New York, New York. For more information, please visit our website at www.LaidlawEnergy.com.
This communication contains statements expressing expectations of future events and/or results which may include, without limitation, statements concerning anticipated financial performance, business prospects, technological developments, potential markets, new products, research and development activities and similar matters. Such statements constitute forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. All statements based on future expectations rather than historical facts are forward-looking statements that involve a number of risks and uncertainties, and Laidlaw cannot provide assurance that such statements will prove to be correct. Laidlaw undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Contact:
Michael B. Bartoszek
Laidlaw Energy Group, Inc.
Tel. 212-480-9884
Email: info@LaidlawEnergy.com
Source: Laidlaw Energy Group, Inc.
4/2/2008 – HH Capital Advisors LLC, a subsidiary of the real estate investment firm The Herrick Co., will spend up to $1.5 billion financing biomass projects over the next five years, Clean Technology Investor has learned.
The firm has already made two investments in alternative energy, including the recently announced deal to put up to $100 million behind a biomass-to-energy conversion project in Berlin, N.H., developed by project developer Laidlaw Energy Group Inc., of New York. Initially HH Capital will provide $8 million in financing for the development stage of the project, including siting and permitting. Eventually that stake could rise to $100 million, according to both executives.
Structured as a sale-leaseback agreement with a Laidlaw Energy subsidiary, Laidlaw Berlin BioPower LLC, the deal requires Laidlaw to sell the project to a newly formed entity affiliated with HH Capital Advisors LLC, which then leases the project back to Laidlaw through a long-term lease.
According to an interview with HH Capital Advisors President John Halle the sale-leaseback structure of the agreement provides several advantages over traditional equity investing. "That's the only vehicle we understand and like and we use it in many other different asset classes," said Halle. "It bifurcates the tax equities, which the independent power producers have no appetite for, [and] it's a good way to define relationships between owners and operators."
The structure is similar to the financing that HH Capital put together in 2004 to back the development of a $202 million, 55 megawatt, poultry litter fueled power plant in Benson, Minn. developed by Fibrowatt LLC. HH Capital intends to invest in large projects in the $225 million to $250 million range, Halle said in an interview.
Laidlaw had initially intended to raise project finance from private equity investors, but ultimately saw better terms in the leaseback agreement with HH Capital. "For us it was advantageous to finance the entire deal rather than finance it ourselves and then go to the long term debt markets for mezzanine financing and find that it's not available," said Bartoszek. Laidlaw is currently finalizing the definitive asset purchase agreement without the North American Dismantling Corp., the current owner of the Berlin, N.H.-site, the company said.
The Berlin project involves the conversion of a former Fraser Paper pulp mill into a biomass-to-energy project that will produce approximately 60 megawatts of renewable power from wood waste. National Grid, the U.S. subsidiary of National Grid PLC, has signed a power purchase agreement for all of the power generated by the biomass to energy facility, according to Bartoszek. "Our business model is basically identifying these facilities that are non-economic, unproductive facilities that we can upgrade," said Bartoszek. "We have about 250 megawatts of new projects in the pipeline."