The biomass power plant, called Telogia Power, and an associated entity, Telogia Power Unit-2, were acquired from CQ BioPower Producers, a subsidiary of CQ, a privately-held power plant operator based out of Blairsville, Pennsylvania.
The acquisition of Telogia Power which includes approximately 125 acres of associated land is a continuation of the company’s multi-year strategy to increase the capacity of the biomass power plants within its existing portfolio.
GreenHunter Renewable Power will acquire the 14MW plant, which was originally constructed in 1986 by GE and has remained in operation with a 90% capacity factor until early 2008, for approximately $2.5 million in cash.
The company has budgeted an additional $8.8 million for the renovation and improvement of the biomass power plant, which is not currently in operation. The company’s goal is to have the project back into commercial operation by the first quarter of 2009.
GreenHunter is currently negotiating with several interested regional co-ops and utilities for a new long-term power purchase agreement. Additionally, GreenHunter has recently negotiated with a third party to provide up to 40% of the power plant’s wood waste feedstock requirement. The remainder of the necessary fuel will be acquired from a variety of local wood waste sources.
