Newstart biomass power project developer and operator Greenleaf Power has acquired a 28-megawatt facility from the Town of Scotia, by California’s northern coast.
The acquisition, for an undisclosed amount, was for a plant that has been operating since 1988, using mill residuals and other available biomass to provide heat and power to the town and the nearby saw mill.
Power is sold under a long-term contract to utility Pacific Gas % Electric.
The facility is the second biomass plant acquired by Greenleaf Power, following on from the 30MW Honey Lake facility in Wendell, California, purchased earlier this year.
Sacramento-based Greenleaf Power said it’s team aims to optimize the efficiency and production of its plants through operational and capacity upgrades and fuel procurement programs.
Hugh Smith, president of Greenleaf Power, said his company saw “huge potential” in biomass power.
He said: “The Greenleaf Power business model is based on the identification of plants in proximity to reliable feedstock supplies, which can be enhanced through basic improvements which increase efficiency and production.”
Mr Smith added that Greenleaf is “optimistic” about taking on other biomass projects, with several currently “in sight”.
Denham
Greenleaf Power is backed by the private equity firm Denham Capital Management, which has investments in a number of renewable energy companies, including Gradient Resources, SunRay Renewables, BioTherm Energy, Big Island Carbon, VitAG and Plantation Energy.
The company sees the opportunity to displace fossil fuel power with electricity generated from forest residues, agricultural wastes and urban wood waste.
Scott Mackin, a partner at Denham Capital, said Greenleaf Power has assembled a “proven” team to acquire, develop and manage biomass projects “with innovation and expertise”.
He said: “Denham is pleased to support Greenleaf Power as a promising company that provides low cost, baseload renewable energy.”
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