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New Energy Capital Closes Bank Financing of Maine Biomass Power Plant
New Energy Capital Closes Bank Financing of Maine Biomass Power Plant
Published 02-09-06
Submitted by New Energy Capital
Renewable Energy Output and Lower Emissions
New Energy Capital Corp. today announced the completion of a $6.9 million project financing of its 16 MW biomass-fired operating power generation facility in Greenville, Maine. Citizens Bank, NA provided the senior debt facility. NEC acquired the operating plant in August from Hafslund, USA, Inc., a wholly-owned subsidiary of Hafslund ASA of Norway. NEC is providing the equity and subordinated debt for the project as well as undertaking financial and asset management functions.
The proceeds of the financing will be used to complete a $12 million upgrade to the facility which will improve performance, increase generating capacity, and reduce emissions. Construction has commenced and completion is expected in May 2006. After the refurbishment and upgrade to 17 MW, 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. 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.
The significant features underpinning the financing are a comprehensive set of construction agreements with highly experienced contractors, a contract for the sale of power and RECs, an experienced staff, and long history of high availability and performance at the plant.
Daniel Goldman, New Energy Capital's CFO, commented: "We are very pleased to have worked with Citizens Bank as the senior lender to this project. 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."
Scott Brown, New Energy Capital CEO, said: "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. 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."
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 directly employs twenty four 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.
About New Energy Capital Corp.
New Energy Capital Corp. (www.newenergycapital.com) is a New England-based company that invests in, owns and operates renewable energy and distributed generation projects. NEC has investments in ethanol and biodiesel production, on-site cogeneration, and biomass-fired power generation. The company has offices in Waltham, MA, Hanover, NH and Warren, VT. The Company is funded by VantagePoint Venture Partners (www.vpvp.com), one of the nation's largest and most active venture capital firms, and the California State Teachers' Retirement System (CalSTRS).
About Citizens Bank, N.A.
Citizens Bank, N.A. is a subsidiary of Citizens Financial Group, Inc., a $137 billion commercial bank holding company headquartered in Providence, R.I. Citizens has more than 1,600 branches, approximately 3,100 ATMs and approximately 26,000 employees in a 13-state retail branch network and non-branch offices in more than 30 states. Citizens is the eighth largest commercial banking company in the United States ranked by deposits. Citizens is owned by The Royal Bank of Scotland Group plc. Its web site is www.citizensbank.com.
Copyright Business Wire 2006
