NEW YORK, USA: Laidlaw Biopower, LLC, an affiliate of Laidlaw Energy Group Inc. has executed a Memorandum of Understanding with an affiliate of a Massachusetts based private equity firm to initially lease and subsequently acquire an operating oil and gas fired power plant in Southeastern Massachusetts.
The plant is situated in an industrial park and currently serves the thermal energy needs of a leading developer and manufacturer of photovoltaic products and technology. Laidlaw plans to convert the plant to biomass power to serve the electric and thermal needs of the photovoltaic company, with the balance of the plant’s electricity to be exported to the grid and sold to a local utility pursuant to a long-term contract.
Laidlaw has concurrently executed a letter of intent with the photovoltaic company which specifies the business terms of a contemplated 20 year power purchase agreement that the parties intend to negotiate. Laidlaw intends to make additional details available on the project upon execution of the power purchase and lease agreements.
Laidlaw expects to execute a lease and assume control of the power plant within the next 120 days. The lease will allow Laidlaw to acquire the plant upon receipt of the necessary permits and approvals to operate it as a biomass plant. Upon execution of the contemplated lease, the power plant will continue to be operated for Laidlaw for Veolia Energy.
An additional and unique element of the project is Laidlaw’s intent to combine solar power with its intended biomass project. Laidlaw intends to install solar panels representing approximately 1.5 megawatts of capacity on the roofs of two of the buildings at the manufacturing facility. The power generated by the solar panels is planned to be used on site, with any excess sold to the grid.
Commenting on the project, Laidlaw President & CEO Michael B. Bartoszek stated, “This project is a win-win. Not only does it offer significant environmental benefits by converting a fossil fuel plant to a renewable fuel, it also helps support a leading cleantech company make innovative products to further support the shift to alternative energy.”
The project is expected to developed as part of the joint venture established between Laidlaw and Homeland Renewable Energy (www.homelandrenewableenergy.com), known as Homeland Laidlaw Energy, LLC. (“HLE”), subject to approval of HLE’s Board of Directors.