Biomass Power Plant Upgrade in Maine

New Energy Capital announced the completion of a $6.9 million financing project to upgrade its 16 MW biomass-fired operating power generation facility, The Greenville Steam Company, in Greenville, Maine, to improve its performance, increase renewable energy output and reduce emissions.

“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,” said Scott Brown, CEO of New Energy Capital (NEC). “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.” After the refurbishment and upgrade, 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. Construction completion is expected in May 2006. 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. NEC, which acquired the operating plant from Hafslund, USA, Inc., a wholly owned subsidiary of Hafslund ASA of Norway, is providing the equity and subordinated debt for the project as well as undertaking financial and asset management functions. Citizens Bank, NA provided the senior debt facility. “We are very pleased to have worked with Citizens Bank as the senior lender to this project,” said Daniel Goldman, New Energy Capital’s CFO. “We are confident that, following the refurbishment, this project will be a successfully performing asset for New Energy Capital and Citizens Bank and we look forward to working with Citizens on other opportunities as we continue to expand our clean energy portfolio.” William E. Kidder, Citizens Bank’s Vice President said: “We are pleased to provide the financing for the upgrade of this important biomass power plant and to be working with New Energy Capital. Citizens Bank is proud to be a part of the team that will position the Greenville Steam Company to be a successful competitor in the emerging renewable energy market.” The Greenville Steam Company power plant has been in operation since 1985 and employs 24 people. The refurbishment and upgrade will create approximately 30 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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