New York Biomass Project to Sell Renewable Energy PTCs

Laidlaw Energy Group is planning to sell the Federal Renewable Energy Production Tax Credits (PTCs) generated by its New York biomass energy project, and has already heard from financial institutions expressing an interest in purchasing the PTCs.

Congress recently extended the date by which qualifying renewable energy facilities must be placed in service in order to qualify for the PTC to December 31, 2008. The PTCs are currently equal to $0.01 per kilowatt-hour for renewable energy generated from open loop biomass facilities such as Laidlaw Energy’s New York facility, with the amount of the credit adjusted annually for inflation. Laidlaw Energy’s New York project involves the conversion of a natural gas fired power plant to utilize 100% clean wood biomass chips as its fuel source, the only power plant in the Buffalo, New York area designed to utilize wood biomass fuel. It is expected to begin operations in 2007 and to generate approximately 50 million kilowatt hours per annum. PTCs will be generated during the first ten years of operations, putting the total projected value of the PTCs for the New York facility at $5 million. Laidlaw Energy also recently received qualification for its New York facility from the Massachusetts Division of Energy Resources to sell Renewable Energy Credits (RECs) in Massachusetts; the facility is also expected to qualify to sell RECs in New York.
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