Sacramento, CA, USA – Greenleaf Power, a new biomass energy company that plans grow by acquiring and/or developing power plants fueled by residual biomass, has just made its second acquisition.
The company announced this week that it purchased the 28-MW Scotia, CA biomass power plant from Marathon Asset Management for an undisclosed amount.
Greenleaf made its first acquisition earlier this year when it bought the 30-MW Honey Lake biomass power plant in Wendell, CA. That acquisition was made under the name Recycled Energy Development, from which Greenleaf Power was spun off.
The 28-MW Scotia CA plant has been operating since 1988 and uses mill residuals, forest thinning, logging slash, green-waste sites and other available biomass to provide heat and power to the town of Scotia and the adjacent saw mill. The facility sells its electricity under long-term contract to Pacific Gas & Electric.
Once it acquires a biomass power facility, Greeleaf seeks to optimize the plants’ efficiency and production by undertaking operational and capacity improvements, fuel procurement initiatives and revenue enhancements, among others.
“We see enormous potential in biomass energy,” said Hugh Smith, president of Greenleaf Power. “The Greenleaf Power business model is based on the identification of plants in proximity to reliable feedstock supplies, which can be enhanced through basic improvements which increase efficiency and production. Already five months into the process with our first plant, we are optimistic about the opportunity to replicate the model in more facilities around the country and have several projects in sight.”
Denham Capital Management, a global energy-focused private equity firm that has made several significant renewable energy investments including Gradient Resources, SunRay Renewables, BioTherm Energy, Big Island Carbon, VitAG and Plantation Energy, backs Greenleaf Power.