Camco reaches agreement to sell 2 Idaho biogas projects

By Erin Voegele | November 27, 2015

On Nov. 17, Camco Clean Energy announced a conditional agreement to sell U.S. biogas assets to Clean Power Holdings LLC for an initial cost consideration of $4.6 million and an additional $1 million of deferred consideration dependent on the fulfilment of certain conditions.

Under the terms of the transaction, Camco has conditionally agreed to sell its entire interests in AG Power Jerome LLC and AG Power DCD LLC. AG Power Jerome is a 4.5 MW biogas power plant located in Idaho. The facility, commissioned in 2012, converts dairy waste from 15,000 cows into biogas that fuels three high-efficiency generators. According to Camco, waste heat from the engines is recycled to provide process heat for the project’s five anaerobic digester cells. The 2.1 MW AG Power DCD facility, located 30 miles from the Jerome plant in Twin Falls, Idaho, was acquired by Camco in 2014 and also processes manure from dairy operations.

Clean Power Holdings is a business incorporated in Delaware that focuses on developing, owning and operating anaerobic digestion (AD) biogas assets in the U.S. Under the terms of the transaction, Camco will sell its interests in the facilities for initial consideration of $18.9 million less associated debt of approximately $14.3 million.

As part of the transaction, Camco said it will sign long-term service agreements to continue to manage the operations of the two facilities on behalf of Clean Power Holdings to assist them with their expansion efforts in the U.S. in AD investments.

In September, Camco announced plans to switch its primary focus to its RedT Energy Storage business.

"This transaction completes the restructure of Camco enabling us to focus entirely on the commercialization of our REDT energy storage technology,” said Scott McGregor, CEO of Camco. “The sale provides us with capital to expand delivery of our product to market."