The 75MW biomass power plant, called as Berlin Station, has all required permits and approvals to begin construction immediately in Berlin.
Public Service Company of New Hampshire will buy the electricity, capacity and Class I Renewable Energy Credits of the facility, through a twenty-year power purchase agreement.
The companies said construction debt, which will be converted to term debt, is being provided through a $200m private placement of senior secured notes.
Cate Street and Starwood affiliates provided equity financing for the power project, and Starwood also provided certain debt-financing to the project.
Babcock & Wilcox Construction will build the project on a turn-key basis, and the facility is expected to generate power by late 2013.
Upon completion, the operations and maintenance services will be provided by a subsidiary of Delta Power Services, a B&W company.
Cate Street president John Halle said the closing represents the culmination of about four years of development work during challenging economic conditions.
The power project will consume approximately 750,000 tons of low-grade wood per year, all of which will be sourced through an environmentally responsible wood fuel procurement program, ensuring CO2-neutrality.
