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    19.6 MW Biomass Power Plant

    Description

    L#20240642

    A biomass power plant is a facility that generates electricity by burning organic materials such as wood, livestock waste, or agricultural leftovers. These materials are known as biomass, and they are considered a renewable energy source because they can be replenished quickly through natural processes. Biomass power plants are an important part of the effort to reduce reliance on fossil fuels and combat climate change.

    One of the key benefits of biomass power plants is their ability to convert waste materials into valuable energy. By using materials that would otherwise be discarded, these plants can provide a sustainable source of power while also reducing the amount of waste that ends up in landfills. This helps to lower greenhouse gas emissions and minimize environmental impact.

    In addition to being environmentally friendly, biomass power plants also provide economic benefits to local communities. They create jobs in the collection, processing, and transportation of biomass materials, as well as in the operation and maintenance of the power plant itself. This can help stimulate economic growth and provide a boost to rural economies where biomass materials are often sourced.

    Biomass power plants also offer a reliable source of electricity that can help stabilize the grid and enhance energy security. Because biomass is a readily available resource, power plants can operate consistently and provide a constant source of power, even when other renewable energy sources like solar or wind are not producing electricity.

    Overview

    Biomass power plants in Canada are playing an increasingly important role in the country’s renewable energy sector. These plants use organic materials such as wood chips, agricultural residues, and waste from forestry and agricultural industries to generate electricity and heat. Biomass is considered a renewable energy source because the organic materials used to produce it can be replenished and are considered carbon neutral, as the carbon emissions released during combustion are offset by the carbon dioxide absorbed by the plants during their growth.

    One of the main advantages of biomass power plants is that they can help reduce greenhouse gas emissions and promote a more sustainable energy future. By using organic waste materials that would otherwise go to landfills or be burned in the open air, biomass power plants are able to produce clean energy and reduce the environmental impact of these waste materials. In addition, biomass power plants contribute to local economies by creating jobs and supporting the forestry and agricultural industries.

    Background

    Provide an important environmentally responsible forest management solution as well as substantial value chain benefits to local timber industry.  Strong fuel supply: strong long-term historical relationships with suppliers for over 30 years and substantial on-site fuel storage  Strong operations: history of safe, strong, reliable operation with highly experienced team Biofuel/biochar and solar farm potential: facility has the fuel relationships and gathering systems for development of biofuels/biochar capability as well as a solar farm.

    Revenues

    Contracted Electricity Sale: Power Purchase Agreement extended until October 2032 based on ACT155. Adjusted EBITDA in 2022 and on a run-rate basis in 2023 is running at a level of $3.5- $4M. These figures add back management fees to the Operator of approximately $0.6M annually.

    The dryer/pellets production project is in permitting process.

    The dryer/pellets project’s Capex is $23M and will provide additional revenue and incremental EBITDA (Plant efficiency and additional revenues from pellet production project).

    Plant Overview

    Basic Details

    Target Price:

    $25,000,000

    Gross Revenue

    $18,354,000

    EBITDA

    $2,265,346

    Business ID:

    L#20240642

    Country

    United States

    Detail

    Business ID:L#20240642
    Property Type:Renewable Energy
    Target Price: $25,000,000
    Gross Revenue:$18,354,000
    EBITDA:$2,265,346
    Target Price / Revenue:1.36x
    Target Price / EBITDA:11.04x
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      A biomass power plant is a facility that generates electricity by burning organic materials such as wood, livestock waste, or agricultural leftovers. These materials are known as biomass, and they are considered a renewable energy source because they can be replenished quickly through natural processes. Biomass power plants are an important part of the effort to reduce reliance on fossil fuels and combat climate change.

      One of the key benefits of biomass power plants is their ability to convert waste materials into valuable energy. By using materials that would otherwise be discarded, these plants can provide a sustainable source of power while also reducing the amount of waste that ends up in landfills. This helps to lower greenhouse gas emissions and minimize environmental impact.

      In addition to being environmentally friendly, biomass power plants also provide economic benefits to local communities. They create jobs in the collection, processing, and transportation of biomass materials, as well as in the operation and maintenance of the power plant itself. This can help stimulate economic growth and provide a boost to rural economies where biomass materials are often sourced.

      Biomass power plants also offer a reliable source of electricity that can help stabilize the grid and enhance energy security. Because biomass is a readily available resource, power plants can operate consistently and provide a constant source of power, even when other renewable energy sources like solar or wind are not producing electricity.

      Overview

      Biomass power plants in Canada are playing an increasingly important role in the country’s renewable energy sector. These plants use organic materials such as wood chips, agricultural residues, and waste from forestry and agricultural industries to generate electricity and heat. Biomass is considered a renewable energy source because the organic materials used to produce it can be replenished and are considered carbon neutral, as the carbon emissions released during combustion are offset by the carbon dioxide absorbed by the plants during their growth.

      One of the main advantages of biomass power plants is that they can help reduce greenhouse gas emissions and promote a more sustainable energy future. By using organic waste materials that would otherwise go to landfills or be burned in the open air, biomass power plants are able to produce clean energy and reduce the environmental impact of these waste materials. In addition, biomass power plants contribute to local economies by creating jobs and supporting the forestry and agricultural industries.

      Background

      Provide an important environmentally responsible forest management solution as well as substantial value chain benefits to local timber industry.  Strong fuel supply: strong long-term historical relationships with suppliers for over 30 years and substantial on-site fuel storage  Strong operations: history of safe, strong, reliable operation with highly experienced team Biofuel/biochar and solar farm potential: facility has the fuel relationships and gathering systems for development of biofuels/biochar capability as well as a solar farm.

      Revenues

      Contracted Electricity Sale: Power Purchase Agreement extended until October 2032 based on ACT155. Adjusted EBITDA in 2022 and on a run-rate basis in 2023 is running at a level of $3.5- $4M. These figures add back management fees to the Operator of approximately $0.6M annually.

      The dryer/pellets production project is in permitting process.

      The dryer/pellets project’s Capex is $23M and will provide additional revenue and incremental EBITDA (Plant efficiency and additional revenues from pellet production project).

      Plant Overview

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