ReEnergy Involved in Two Transactions

ReEnergy Holdings LLC, Albany, N.Y., has entered into an agreement to acquire the Lyonsdale Biomass Facility in Lyons Falls, N.Y., from Central Hudson Enterprises Corp., a subsidiary of CH Energy Group, Inc., based in Poughkeepsie, N.Y. The 22-megawatt facility has operated since 1992 and is fueled with sustainably harvested wood. The closing is expected in May 2011.

“Our acquisition of the Lyonsdale Facility is consistent with our business strategy of acquiring, owning and managing solid fuel renewable energy facilities,” said Larry Richardson, CEO, ReEnergy. “With this acquisition, we look forward to continuing to provide clean, cost-effective renewable energy to homes, schools and businesses across the State of New York.”

“We are excited with the expansion of ReEnergy’s footprint in the regional renewable energy and fuel markets into New York, which complements our existing facilities and pending acquisitions in Connecticut, New Hampshire and Maine,” said Tom Beck, chief commercial officer, ReEnergy.

It was the second proposed acquisition by ReEnergy in a month. The company announced on March 17 it signed a definitive agreement to acquire the co-generation assets at the Rumford (ME) Paper Mill from a subsidiary of NewPage Corp. NewPage, the largest coated paper manufacturer in North America, announced its subsidiary, Rumford Paper Co., based in Rumford, Maine, has signed an agreement to sell its cogeneration energy assets to a unit of ReEnergy. The purchase price for the assets is $61 million.

The transaction contemplates a long-term, symbiotic relationship between Rumford and ReEnergy. Following the closing, ReEnergy will operate the acquired assets to provide energy to the Rumford mill in the form of electricity and thermal energy. In turn, Rumford’s pulp and papermaking process will supply ReEnergy with the sustainable biomass fuel supply needed to operate the cogeneration assets.

“The transaction represents an opportunity for the Rumford mill to realize value from its green energy assets and to focus on its core business of making high quality paper,” said George Martin, president and CEO, NewPage.  

“This exciting, new relationship with the Rumford mill is consistent with our business strategy of owning and managing solid fuel renewable energy facilities. We look forward to providing mission-critical, cost effective electricity and thermal energy to the Rumford mill,” said Richardson.  

The transaction is subject to regulatory approvals and is expected to close in mid-2011.

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