Biomass power company EWP Renewable contracts to buy California Power Holdings, which owns two natural gas-fired power plants in California with combined capacity of 94 MW; EWP to own, operate 165 MW when deal closes
May 19, 2011
– EWP Renewable Corporation (EWPRC) announced today that it is under contract to purchase 100% of the ownership interests in California Power Holdings, LLC (CPH) from a fund managed by Wayzata Investment Partners LLC (Wayzata). CPH owns two clean-burning natural gas-fired power facilities in California, one 45 megawatt facility located in Red Bluff, CA, and one 49 megawatt facility located in Chowchilla, CA. EWPRC, a US-based energy company specializing in development, ownership and operation of renewable energy and cogeneration plants, will continue the oversight and operation of these two highly-reliable facilities, including seeking new opportunities for improvements in supporting grid reliability, operating efficiency and financial performance, as had been the case under the ownership of Wayzata.
Joon Pyo, Chairman of EWPRC says, "I am pleased to successfully add these two power plants to EWPRC's assets. With this acquisition, EWPRC establishes a firm and diverse presence in California's critical electric and renewable resource base, and I believe this is a great move for EWPRC's future."
Established in mid 2006 under prior owners, EWPRC was purchased September 30, 2010 by EWP America, Inc., an affiliate of Korea East-West Power Co., Ltd. (EWP) based in Seoul, South Korea. EWPRC's US management team members each have decades of direct development, acquisition, financing, design, construction and operations experience in cogeneration, biomass, and efficient district energy systems. EWPRC today owns and operates three renewable energy biomass plants located in California and New Hampshire, and a "combined heat and power" cogeneration plant in New York City. After closing the CPH purchase, EWPRC will own and operate 165 megawatts of efficient and reliable, renewable energy and clean natural gas energy facilities in the US.
Scotia Capital (USA) Inc. acted as financial advisor to Wayzata in connection with the transaction.