Nova Scotia biomass cogeneration plant sold for $25 million
The government of Nova Scotia has sold a 30 MW biomass-fired cogeneration facility to Emera Inc. for $25 million. The Brooklyn Energy facility was recently purchased by the government as a part of a larger deal with Resolute Forest Products that also included 555,000 acres and a paper mill.
Darrell Dexter, Nova Scotia premier, said the province sold the biomass facility to Emera in order to protect ratepayers from the termination of the current power purchase agreement with Nova Scotia Power, an agreement that was set to expire in 2025.
Chris Huskilson, president and CEO of Emera, said the biomass plant is an important addition to the company’s energy generation portfolio. In 2011, Emera’s overall revenue totals equaled roughly $2.1 billion. “The plant will continue to generate clean energy for Nova Scotians and provide a long-term market for local biomass suppliers,” he said.
The employees currently operating the facility will remain at the plant, and according to Emera, the company will continue to source fuel for the plant from local suppliers. The province has also agreed to ensure wood waste residue and wood fiber from Crown (provincial) lands will remain available if the plant should need additional supply.
Although the government sold the biomass facility, the province will keep the Bowater paper mill included in the deal. The mill, valued at $5 million, will be retrofitted into a research center devoted to clean energy, bioenergy and forest products utilization.