Halifax American Energy Co. wins bid for 4 MW of electricity from proposed US$80M, 17-MW Concord Steam wood biomass plant in Concord, New Hampshire, slated for construction by year's end
MANCHESTER, New Hampshire
September 29, 2011
– Halifax American Energy Company (HAEC) exclusive marketing agent in New England for South Jersey Energy, emerged the winner in a competitive bid to buy 4 megawatts of electricity from the proposed $80 million Concord (NH) Steam biomass plant.
Halifax American Energy Company (HAEC), exclusive marketing agent in New England for South Jersey Energy, emerged the winner in a competitive bid to buy 4 megawatts of electricity from the proposed $80 million Concord Steam biomass plant. The Manchester, New Hampshire-based company provides government, commercial, institutional and industrial accounts with access to wholesale power and the real time bulk power market.
The new Concord Steam plant met a series of green lights last month as both the New Hampshire Executive Council and the Concord City Council signed 10-year agreements to buy electricity from the plant through South Jersey Energy.
Energy deregulation requires that-- with the exception of PSNH-- electricity generators not be energy providers. Therefore, Concord Steam must sell its electricity to a third-party company that will in turn sell it to the State and City.
“We participated because we felt we could give the best deal to the City and the State,” said August Fromuth, Founder and Managing Director of HAEC. “Because our contract for the electricity generated by the new plant involves some Direct to Grid features that will work to keep incidental costs low, both governments will realize great savings. That’s where our expertise and experience will pay off.”
HAEC, through its partner South Jersey Energy, provides commercial, institutional, and industrial end users with low cost wholesale electricity and access to the real time bulk power markets. Accounts in New Hampshire include BJ’s Wholesale Club, Merchants Motors, New England Wood Pellets, as well as many other municipal and government accounts.
“This is the direction New Hampshire should be going—doing business with an energy generator that produces a heat source as well as power—highly efficient and cost effective with cost certainty for ten years—and no government subsidies of any sort.
"This plant will produce both low carbon emission steam and electricity--from a renewable resource that provides additional New Hampshire jobs and saves money for the state and its capital,” said Fromuth.
To get funding for the $80 million plant, Concord Steam was required to sell all 17 megawatts of electricity it anticipates generating. Thirteen megawatts of electricity had been sold to other entities before contracts were signed with the state and city, but these newest agreements ensure that all financing requirements have been met.
Peter Bloomfield, 25-year president of Concord Steam, credited HAEC’s Vice President of Business Operations, Bart Fromuth, with pulling the pieces together to make the deal work. “There were five separate parties at the table,” said Bloomfield, “Bart really came through for us. He helped make sure that everyone was focused during the negotiations and that the process moved as quickly as possible. He worked tirelessly.”
Louis DeCicco, General Manager of South Jersey Energy, echoed Bloomfield. “Bart was integral to the successful completion of negotiations. Because of his efforts, New Hampshire is well on its way to having one of the Northeast’s most state-of-the-art, renewable energy, co-generation steam/electricity plants.”
Concord Steam Corporation plans to break ground before a December 31 deadline when crucial federal tax credits expire.
HAEC (haecpower.com) is an electric energy marketer which, in partnership with South Jersey Energy, specializes in transactions converting wholesale and bulk power products into shapes and durations suitable for industrial, commercial, institutional and governmental end users