Starwood Energy Invests in Another Biomass Power Project
Starwood Energy Group Global, LLC has closed in on the acquisition of a partial ownership interest in a biomass power plant being built in Florida.
The Connecticut-based energy investment firm has purchased Tyr Energy, Inc.'s stake in the Gainsville Renewable Energy Center (GREC). Located in Gainsville, Florida, the facility will convert one million tons of wood biomass (forest residue, wood processing residues and clean municipal wood waste) into 100 MW of renewable energy a year.
American Renewables began constructing the $500 million facility last March. When fully operational, in 2013, the power plant will be one of the largest of its kind in the country -- capable of producing enough energy to power 70,000 homes. Once online, the electricity generated at the GREC will be sold to municipally-owned Gainesville Regional Utilities under a 30-year power purchase agreement (PPA).
Tyr Energy, a wholly-owned subsidiary of Japan's ITOCHU Corporation, contributed equity to the project as one of the GREC's original developers. Now, Starwood Energy will provide equity financing for an estimated 40% ownership stake in the power plant. With this acquisition the company adds a second utility-scale biomass project to its portfolio.
"This represents our second investment in a biomass power facility in the last four months and allowed us to capitalize on our expertise to complete the acquisition in a short time frame," said Himanshu Saxena, Senior Vice President of Starwood Energy.
With partner Cate Street Capital, Inc, Starwood Energy is developing a 75 MW biomass power plant in New Hampshire. In September, the partners announced they had closed financing on the $275 million Berlin Station and awarded the construction contract to The Babcock & Wilcox Company (B&W). B&W is expected to bring the project online in 2013 at which time electricity will be sold to Public Service of New Hampshire through a 20-year PPA.
Starwood Energy, which also invests in natural gas fired generation and transmission projects, is rapidly growing its investments in renewable energy. In July 2011, the company closed financing on the final phase of a 60 MW photovoltaic project in Ontario which, when complete, will be North America's second largest utility-scale solar PV project.
Image Credit: American Renewables
Joseph Baker is a freelance writer living in Vancouver BC. His areas of focus include renewable energy, sustainability and climate change.
Any opinion contained in this article is solely that of the writers, and does not necessarily shapes or reflect the editorial opinions of Energy Boom.
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