GreenHunter Mesquite Lake, LLC, a subsidiary of GreenHunter Energy, Inc. (NYSE Amex: GRH), announced Thursday a 20-year power sales agreement for the output of a biomass-fired power plant located in Southern California.
GreenHunter Energy said the power sales agreement with Imperial Irrigation District (IID) will allow for completion of the 27-megawatts (MW) power plant.
The power sales must begin on or before June 30, 2011.
GreenHunter said it had previously cancelled an existing power sales agreement with another California utility which had been assumed when the acquisition of the asset occurred in 2007.
“Due to depressed fossil fuel prices, the alternative energy business today offers few appealing commercial opportunities. The biomass business is the one outstanding sector that offers immediate profitability depending upon the location of the facility," Gary C. Evans, Chairman, President, and CEO of GreenHunter Energy said. " This new power sales agreement for the electrical power output generated from our Mesquite Lake Biomass Facility located in the Imperial Valley of Southern California will enable us to complete construction and have a viable operating asset within our existing portfolio.”
GreenHunter Energy is focused on the renewable energy sectors of wind, hydro, geothermal, solar, biofuels, and biomass power plants. The company’s assets consist of leases of real property for future development of wind energy projects located in Montana, New Mexico, California, Texas, Wyoming and The Peoples Republic of China. GreenHunter also owns the nation’s largest biodiesel refinery located in Houston, Texas and a biomass-fired power plant located in Brawley, California.
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