ReEnergy will purchase five Boralex biomass power plants
Boralex will sell its five U.S. biomass power plants, a move Boralex President and CEO Patrick Lemaire called “company-transforming,” adding that it will change the company’s operation.
ReEnergy Holdings LLC has agreed to purchase the facilities for a total of $93 million, yielding after-tax proceeds for Boralex of about $81 million. The sale, announced Nov. 7, includes a 40-megawatt (MW) facility in Ashland, Maine; a 36-MW facility in Fort Fairfield, Maine; a 40-MW plant in Livermore Falls, Maine; a 50-MW facility in Stratton, Maine; and a 20-MW facility in Chateaugay, N.Y., all designed to consume woody biomass.
“We have entered into this agreement after considerable reflection by Boralex’s management and board of directors about our strategy,” Lemaire said. “We have concluded that, at this stage in our development, this transaction provides Boralex with the best opportunity to pursue its growth objectives in the other areas of the renewable energy market.”
During a conference call to discuss the transaction Nov. 7, Boralex executives said they plan to redeploy the funds relatively quickly, investing in ready-to-build wind, solar and hydro projects in Canada and Europe. The move, they said, represents a significant improvement in the company’s risk profile.
"This acquisition is a significant step in our strategy to build an integrated solid fuel renewable energy facilities company in the U.S.,” said Larry Richardson, ReEnergy CEO. “We look forward to becoming corporate citizens in four communities in Maine and another community in the North Country of New York, and continuing to provide economic opportunity and clean, reliable, cost-effective renewable energy to those regions.”
Through the transaction, ReEnergy will grow to about 260 employees in four states, and its total energy portfolio will expand to 240 MW.
The sale is expected to close by the end of the year.