Private equity-backed Greenleaf Power, which owns and operates biomass power plants, said it will acquire Colmac Energy – a 47-megawatt facility – from American Consumer Industries. Financial terms of the deal were not released. Colmac is the third such acquisition by Greenleaf Power. Greenleaf is backed by Denham Capital.
Greenleaf Power, an owner and operator of biomass power plants, announced today that it has reached an agreement to purchase 100% of the stock of Colmac Energy, Inc (Colmac). American Consumer Industries, the majority shareholder of Colmac, has operated the Southern California plant since its construction and initial start-up in 1992. The 47-megawatt facility is one of the largest biomass facilities in California and sells its electrical output to Southern California Edison under a long-term agreement. The plant is fueled primarily using clean diverted wood waste, green waste and agricultural residues. The transaction is expected to close after receipt of required regulatory approvals. Financial terms of the transaction were not disclosed.
Greenleaf Power is focused on the acquisition and development of power plants fueled by residual biomass feedstock. Greenleaf’s experienced team of clean energy professionals optimize efficiency and production of the plants it acquires by undertaking operational and capacity improvements, fuel procurement initiatives and revenue enhancements.
Colmac is the third biomass acquisition by Greenleaf Power. Earlier this year, Greenleaf purchased the 30-megawatt Honey Lake biomass plant in Wendel, Calif. as well as a 28-megawatt biomass plant in Scotia, Calif.
“The Colmac facility is a significant acquisition for Greenleaf Power,” said Hugh Smith, president of Greenleaf Power. “It will be a flagship plant for our growing fleet which now totals over 100 MW of capacity — and will provide the critical mass necessary to leverage the synergies that naturally result from the ownership of multiple facilities.”
Greenleaf Power is backed by Denham Capital, a leading global energy-focused private equity firm, which has made several significant renewable energy investments including Gradient Resources, SunRay Renewables, BioTherm Energy, Big Island Carbon, VitAG and Plantation Energy.
“Denham continues to see positive momentum in the renewable energy space and Greenleaf is well positioned to capitalize on the opportunities in the market,” said Scott Mackin, partner, Denham Capital. “While wind and solar capture much of the attention in renewable energy, bioenergy remains a vibrant, but often overlooked mainstay of our clean energy future.”
Biomass fuel used by Greenleaf Power is a renewable energy source consisting of organic material from plants. Biomass power facilities harness the energy stored in such organic materials to produce baseload, renewable power.
The use of beneficial biomass resources such as agricultural waste and urban wood waste diversion can reduce overall carbon emissions by displacing those from fossil fuels, such as coal, oil or natural gas. Biomass power plants use this material for fuel, burning it under controlled, low-emission conditions to generate electricity. In addition biomass facilities divert waste from landfills and displace the greenhouse gas emissions of the methane that would result from the decomposition and decaying of organic materials from landfills, forest accumulation or composting. Emission of methane creates 20 times more greenhouse gas effect than the CO2 produced during combustion. The process generally results in zero to negative net carbon emissions; carbon released by burning biomass is more than offset by reduced use of fossil fuels, lower release of methane, and the increased growth rate of replacement biomass.
About Greenleaf Power
Greenleaf Power acquires, develops, owns and operates power projects that utilize residual biomass as fuel. Greenleaf Power currently owns and operates approximately 60 megawatts of biomass generating assets in California. Greenleaf Power has established independent management and recently relocated its corporate headquarters from Illinois to Sacramento, Calif. For more information about Greenleaf Power, visit www.greenleaf-power.com.
About Denham Capital
Denham Capital is a leading global private equity firm with offices in Boston, Houston, London, Sao Paulo, Short Hills, NJ and Singapore. With approximately $4.3 billion of invested and committed capital, Denham makes direct investments in all segments of the energy and commodities value chain including oil and gas, mining and metals, power and renewable investments and energy-related infrastructure and services. The firm invests globally, having made investments in the US, Canada, South America, Europe, Russia/FSU, Africa, Asia and Australia, and across all parts of the capital structure and all stages of the corporate and asset lifecycle, from development projects to mature, operating businesses. Denham typically targets investments between $50 million and $300 million. For more information about Denham Capital, visit www.denhamcapital.com. Denham Capital does not provide investment advisory services to the public.