Source – 4-Traders
Laidlaw Energy Group, Inc. (Ticker symbol “LLEG”) announced today that it has executed a final Purchase and Sales Agreement to acquire a 14 megawatt biomass-energy power plant located in Susanville, CA. LLEG will be the 100 percent equity holder.
The sellers of the Susanville plant are Renegy, Inc., an entity controlled by Robert M. Worsley, founder and former Chief Executive of SkyMall, Inc., and Nature Energies, Inc., whose ultimate parent is Hanalei Renewables, a successful French renewable energy company. Both companies will become equity holders in Laidlaw Energy and will be issued a new class of preferred shares.
Commenting on the transaction, Laidlaw Energy President & CEO Michael Bartoszek stated “We are pleased to have reached this agreement and welcome our new business partners. We look forward to working with them as we advance the Susanville project and hopefully on other potential opportunities in the future.”
Laidlaw Energy plans to refurbish the Susanville plant, a process that is expected to take approximately 12 months and cost approximately $20 million. The cost of refurbishment is expected to largely be funded via a bank loan guaranteed through a program provided by the Federal government, along with a Federal grant for which the project is expected to qualify.
Laidlaw anticipates that once the plant is operational it will generate revenues of approximately $8 – $9 million per annum. A 20 to 30 year power purchase agreement is currently being negotiated.
The final closing is expected to occur shortly once Laidlaw has received certain consents to the transfer of some agreements from the sellers to Laidlaw. This is a minor issue and is not anticipated to create any issues for the closing
About Laidlaw Energy Group
Laidlaw Energy is engaged in the development of independent power plants that generate electricity from renewable resources, with a particular emphasis on biomass power and combined heat and power projects. Laidlaw Energy’s mission is to build and manage a profitable portfolio of generation facilities through the development of new facilities and the acquisition of existing facilities, and in so doing become the leading supplier of biomass power in the United States. Laidlaw Energy is headquartered in New York, New York. For more information, please visit our website at www.LaidlawEnergy.com.