New Energy Capital Corp. (NEC) has completed the $6.9 million project financing of its 16 MW biomass-fired operating power generation facility in Greenville, Maine. Citizens Bank, NA provided the senior debt facility.
NEC acquired the operating plant in August from Hafslund, USA, Inc., a wholly-owned subsidiary of Hafslund ASA of Norway. NEC is providing the equity and subordinated debt for the project as well as undertaking financial and asset management functions.
The proceeds of the financing will be used to complete a $12 million upgrade to the facility which will improve performance, increase generating capacity, and reduce emissions. Construction has commenced and completion is expected in May 2006. After the refurbishment and upgrade to 17 MW, the facility will qualify as a New Renewable Generating Unit under Massachusetts regulations making it eligible to sell "Renewable Energy Certificates" (RECs) to load serving entities and establishing Greenville as an important source of renewable energy for the New England market.
With the recent adoption of the Regional Greenhouse Gas Initiative (RGGI) by Northeastern states, including Maine, the plant will also be in a good position to help meet the RGGI mandate to cut global warming pollution.
Scott Brown, New Energy Capital CEO, said: "The project upgrades will significantly reduce plant emissions and increase plant output, allowing Greenville Steam Company to provide significant supplies of clean and competitively priced renewable power. The Greenville investment comes at a pivotal time with increasing cost of electricity in New England as well as rising clean energy requirements in the region."
The Greenville Steam Company power plant has been in operation since 1985 and directly employs 24 people. The refurbishment and upgrade will create approximately 30 biomass jobs during construction and will ensure the continuing operation of the facility. New combustion and emission controls technology will be supplied by Energy Products of Idaho, Inc. and Mobotec USA, Inc. of Walnut Creek, California. Fastco, Inc. of Lincoln, Maine will provide installation services.
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