Laidlaw's California biomass power plant purchase final
Laidlaw Energy Group has completed the acquisition of an idled 12.5-megawatt biomass power plant in Susanville, Calif., and expects to start it up again in early- to mid-2013.
The facility was purchased from Renergy Inc. and Natural Energies Inc., both of which will become equity holders in Laidlaw Energy and will be issued a new class of preferred shares. Laidlaw will invest about $20 million in a 12-month refurbishment to upgrade the equipment and hire a new crew.
“We are pleased to have reached this agreement and welcome our new stockholders,” said Michael Bartoszek, Laidlaw Energy president and CEO. “We are excited to be engaged in the California renewable energy marketplace, a state that has enacted legislation to obtain 33 percent of its energy from renewable resources by 2020.”
The plant will run on low-grade forest residuals and will be Laidlaw’s first West Coast project. It represents part of a larger strategy of growth diversification that Laidlaw has been pursuing, currently evaluating other potential acquisitions of U.S. biomass facilities including in California.