GreenHunter Acquires Biomass Plant in Florida

Greenhunter Renewable Power LLC, a wholly-owned subsidiary of GreenHunter Energ, Inc. announced the closing of an acquisition of an existing 14-megawatt (MW) wood waste-fired biomass power plant located in Telogia, Florida. The plant, Telogia Power LLC, and an associated entity, Telogia Power Unit #2 LLC, were acquired from CQ BioPower Producers, a subsidiary of CQ, Inc.

GreenHunter Renewable Power LLC will acquire the 14 MW plant, which was originally constructed in 1986 by General Electric and remained in operation with a 90% capacity factor until early 2008, from CQ for approximately US $2.5 million in cash. The company has budgeted an additional US $8.8 million for the renovation and improvement of the biomass power plant, which is not currently in operation.

The company’s goal is to have the project back into commercial operation by the first quarter of 2009. GreenHunter is currently negotiating with several interested regional co-ops and utilities for a new long-term power purchase agreement. Additionally, GreenHunter has recently negotiated with a third party to provide up to 40% of the power plant’s wood waste feedstock requirement. The remainder of the necessary fuel will be acquired from a variety of local wood waste sources.

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