Riverstone Backs Biomass Company Intrinergy

Intrinergy, a global biomass renewable energy company based in Richmond, Va., has raised an undisclosed amount of private equity funding from Riverstone Holdings.


Riverstone Holdings LLC’s (“Riverstone”) most recent renewable and alternative energy fund announced today that it has made a strategic investment in Intrinergy, a leading biomass renewable energy company. The company said it is planning to use the proceeds from Riverstone, which were not disclosed, to fuel its growth strategy in the United States and in Western Europe.

“We are very pleased to be partnering with Riverstone,” said John Keppler, Chief Executive Officer of Intrinergy. “The firm possesses deep knowledge and understanding of the biomass renewable energy space and is a highly respected investor with a long and successful track record. The capital from Riverstone will enable us to build on our market position and take advantage of the significant growth opportunities we see for biomass, here and in Europe.”

Mr. Keppler predicted that, “Demand for biomass from utilities and consumers committed to clean energy and carbon reduction will soon outstrip biomass resources available in Europe. This, along with rising demand for biomass in North America, creates significant opportunities for Intrinergy, a company with operations in both continents.”

David Leuschen and Pierre Lapeyre, Co-founders of Riverstone, said, “We are extremely pleased to be partnering with Intrinergy, which is regarded as one of the most experienced participants in the development of solid biomass fuel. The tremendous growth opportunity in the emerging biomass sector, coupled with Intrinergy’s success to date and strong management team, make this an excellent addition to our renewable energy portfolio.”

Riverstone’s investment will enable Intrinergy to acquire and develop low-cost wood pellet operations and other fiber processing assets, principally in the Southeastern United States and other selected regions. This will position the company to extend its ability to offer sustainable, carbon-neutral biomass to many of the world’s largest utilities that seek to reduce their carbon footprint.

Mr. Keppler added, “Utilities and commercial energy users require reliable, experienced, and creditworthy counterparties to help them meet C02 reduction requirements. Biomass-fired energy has proven a compelling means of reducing these emissions, and with this investment, Riverstone and Intrinergy are creating the world leader in biomass aggregation, processing, and supply for utility, industrial, and commercial applications across the U.S. and Europe.”

A key element of Intrinergy’s success has been its long and consistent track record of sourcing and delivering biomass for energy consumption to its commercial clients through its wholly owned subsidiary, Enviva Materials.

“Major power producers provide firm capacity – access to ‘around-the-clock’ energy – to their customers” says Mr. Keppler. “Firm capacity requires reliable, predictable fuel supply, and Intrinergy has been an early and leading fuel supplier in developing the high growth market for biomass power generation. Since 2004, Intrinergy has worked successfully with major customers who not only need to reduce their C02 emissions but who also need to produce consistent, reliable levels of renewable energy. We are taking the same certainty of supply that utilities have come to demand from their fossil fuel suppliers, and we are translating that to the renewable sector,” Mr. Keppler concluded.

About Intrinergy

Founded in 2004, Intrinergy specializes in biomass sourcing, processing, and delivery, and in energy production for large-scale utility and industrial customers around the world, helping to reduce their carbon emissions and exposure to fossil fuel price volatility. Today, Intrinergy operates in the Southeast and Midwest United States and in Europe. The most recent addition to Intrinergy’s plant portfolio, Intrinergy Valorbois in Belgium, will be commissioned in Q2 2010 and will generate up to 5MW of electricity and 50,000 tons of pellets. By the end of 2010, Intrinergy’s total biomass supply capabilities will exceed 1,300,000 tons per year. For more information, visit www.intrinergy.com.

About Riverstone Holdings LLC

Riverstone Holdings LLC, an energy and power-focused private equity firm founded in 2000, has approximately $17 billion under management across six investment funds, including the world’s largest renewable energy fund. Riverstone conducts buyout and growth capital investments in the midstream, exploration and production, oilfield services, power, and renewable sectors of the energy industry. With offices in New York, London, and Houston, the firm has committed approximately $13 billion to 66 investments in North America, Latin America, Europe, and Asia. For more information, visit www.riverstonellc.com.