Energy Investors Funds has acquired Watertown Renewable Power LLC, a 30-megawatt biomass power project currently under development in Watertown, Connecticut. The seller was Tamarack Energy Inc. No financial terms were disclosed.
Energy Investors Funds (“EIF”), an established private equity fund manager that invests in the U.S. energy and electric power sector, announced that its United States Power Fund III, L.P. (“USPF III”) has acquired Watertown Renewable Power, LLC, (“WRP”) a 30-megawatt biomass power project currently under development in Watertown, Connecticut, from Tamarack Energy, Inc. (“Tamarack”). Terms of the transaction were not disclosed.
“We’re thrilled to be taking control of Watertown Renewable Power,” said Lucas Missong, a Vice President of Energy Investors Funds. “This project provides a new source of clean electricity in a state with limited renewable resources. We believe investments in renewable power projects such as WRP will generate a solid return on investment for our investors as well as help our nation become less dependent on fossil fuels for the creation of electricity.”
Once completed, WRP will be capable of generating enough clean electricity to power roughly 30,000 area homes. The plant will run on small tree branches, stumps, old cargo pallets and trees taken down as part of forestry management programs.
Tamarack launched the Watertown project more than two years ago. Since then, the WRP team has secured numerous local zoning, air and wetlands permits and guided the project through a rigorous state siting process. As a successful applicant to Connecticut’s Project 150 program, WRP was able to negotiate an agreement with Connecticut Light & Power for the purchase of energy from the plant.
EIF has made numerous investments in the clean power sector, including investments in 16 hydroelectric facilities and a portfolio of 19 landfill gas-fired facilities across the United States. The landfill projects turn waste methane into electricity and pipeline-quality renewable natural gas. The firm also owns or is funding the development of biomass projects in New England, California and Florida as well as a geothermal project in Nevada. The company has also invested in California-based Solar Power Partners, Inc., a leading national solar energy services provider. In addition, EIF owns 70 percent of the Detroit Resource Recovery Facility, an electric power generation and steam facility fueled by municipal refuse.
“We found that a number of well-funded investment groups were interested in discussing the purchase of the Watertown project,” said Tamarack Project Manager Mark Mirabito. “EIF emerged as the successful buyer because of their significant experience in raising capital for clean energy projects. EIF is ideally positioned to lead WRP to a rapid and successful completion.”
It is expected that some project management staff from Tamarack will remain active in the development of the project. Nearly two dozen jobs will be created at the plant itself. Another 100 workers will be needed to harvest, process, and transport the wood fuel material to the Echo Lake Road project site according to an analysis performed by a leading authority on biomass project development. Hundreds of construction jobs will also be created during the 24-month period building the plant.
About Energy Investors Funds
EIF was founded in 1987 as the first private equity fund manager dedicated exclusively to the independent power and electric utility industry. Its consistent, proven investment strategy is to create geographically and technologically diversified portfolios of electric power-related assets that provide superior risk-adjusted equity returns with current cash flow and capital appreciation. As investment managers, EIF seeks to mitigate commodity risk (fuel and electricity) by focusing primarily on acquiring power assets with long-term off-take contracts. EIF has mobilized over $3.4 billion in capital raised in seven funds, and currently manages four private equity funds from its offices in Boston, New York, and San Francisco. These funds have made over 100 diversified investments with a combined underlying asset value exceeding $7 billion. EIF controls 4,000 MW of operating power assets with another 2,200 MW of power assets under development or construction. For more information visit www.eif.com.