Renegy Holdings Completes Acquisition of Susanville Biomass Plant
26 Noviembre 2007 - 7:30AM
Marketwired
TEMPE, AZ (NASDAQ: RNGY) announced today that it has executed
and closed a definitive Asset Purchase Agreement with a leading
forest products and timber company for the acquisition of an idle
biomass power plant for $1.3 million. The plant assets include a
boiler capable of producing 160,000 pounds per hour of steam and a
turbine that can generate approximately 13 megawatts (MW) of
base-load electricity to power as many as 13,000 homes.
Renegy is continuing to explore the most suitable location for
operating the plant, which may be at its current site in
Susanville, California or at another location. The Asset Purchase
Agreement provides that Renegy will have the right to lease or
purchase the real property where the plant is currently located. If
maintained in Susanville, Renegy estimates the plant could be fully
operational in 2008, subject to the timing associated with
completing refurbishment and securing any air and other
environmental permits necessary to restart the plant. The final
site determination will be based upon long-term fuel availability
in the form of wood waste and the securing of a long-term power
purchase agreement from a utility company for the entire power
output of the plant. Depending upon location and site-specific
costs, Renegy anticipates investing as much as $15 million to
refurbish, and possibly relocate, the plant. Renegy estimates this
investment will be substantially less if the plant is maintained at
its current location. Renegy is currently in discussions with
certain utility companies relating to long-term power purchase
agreements for a plant of this size as well as future energy
facilities, and has identified several prospective sites for future
plants, including sites suitable for this plant if relocated.
Renegy is also continuing discussions with several potential
financial partners relating to debt financing for the project.
"The acquisition of this wood waste facility is a key first step
toward our goal of building a growing portfolio of biomass to
electricity power generation assets throughout North America,"
stated Bob Worsley, chairman and CEO of Renegy. "This plant will
add approximately 13 MW of power output to the 24 MW that will be
generated by our first biomass facility in Arizona, which is
scheduled to be commissioned in the first half of 2008. Both these
and future biomass facilities will help address the rapidly
increasing demand for renewable energy driven by Renewable
Portfolio Standards (RPS) and other legislation now in place in 28
states across the country. Such regulations are creating
significant opportunities for renewable energy projects,
particularly in California, which requires that utilities obtain 20
percent of their total power sold from renewable sources by the end
of 2010."
About Renegy
Renegy, based in Tempe, Arizona, is a green energy company
focused on acquiring, developing and operating a growing portfolio
of biomass to electricity power generation facilities. Renegy seeks
to rapidly grow its renewable energy assets with the goal of
becoming the leading independent power producer (IPP) of biomass
electricity in North America. Its first project is Snowflake White
Mountain Power (SWMP), a 24 megawatt (MW) biomass facility under
construction near Snowflake, Arizona. This facility is scheduled to
begin supplying electrical power to Arizona's two leading utility
companies in the first half of 2008, and serves as a solid
foundation for the Company's growth. Find Renegy on the Worldwide
Web at www.Renegy.com.
This news release contains forward-looking statements within the
meaning of the Securities Act of 1933, as amended, and the
Securities Exchange Act of 1934, as amended, and is subject to the
safe harbors created therein. These statements include, but are not
limited to, those regarding the ability of the Company to secure a
suitable location for operating the plant, either at its current
site in Susanville, California or at another site, long-term fuel
availability in the form of wood waste, and debt financing for the
project; the prospects and timing associated with commencing
operation of the plant, including completing refurbishment,
obtaining air and other environmental permits necessary to restart
the plant and securing a long-term power purchase agreement from a
utility company for the entire power output of the plant; the
expected investment of as much as $15.0 million to refurbish, and
possibly relocate, the plant; the timing associated with the
commissioning of the Company's Arizona biomass power plant and its
ability to begin producing electrical power in the first half of
2008; and the Company's growth strategy and future opportunities.
These statements are subject to risks and uncertainties that could
cause actual results and events to differ materially from those
expressed in the forward-looking statements. These risks and
uncertainties include, among others, the risk that we will not be
able to secure a suitable location, long-term fuel supply, air
permits, a power purchase agreement or financing for the 13 MW
biomass plant; delays in the completion and commissioning of the
Arizona biomass plant or future energy facilities; diversion of
management's attention away from other business concerns; the risks
associated with the development, generally, of the combined
company's overall strategic objectives; the existence of
unanticipated technical, commercial or other setbacks related to
the Company's products and services, including construction delays
and the ability of the Company to secure adequate fuel for its
biomass plants; changes in the environmental requirements relating
to certain emissions; and the other risks set forth in the
Company's most recent Form 10-QSB filed with the Securities and
Exchange Commission. The Company undertakes no obligation to update
any forward-looking statements to reflect new information, events,
or circumstances occurring after the date of this release.
CONTACT: Megan Meloni Investor Relations (650) 631-2847
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