Traxys Power wins US$28M in financing from Oakland County, Michigan, to acquire, convert DTE Energy power station in Pontiac, Michigan, to woody biomass power plant; DTE to buy plant's output under 20-year deal

LOS ANGELES , April 23, 2012 () –

Traxys Power Group Inc. has received approval for US$28 million in financing to help with a US$35-million woody biomass power conversion project in Pontiac, Michigan, reported Crain’s Detroit Business on April 22.

Traxys Power, a unit of New York-based Traxys North America LLC, will acquire and convert a DTE Energy Co. power station and nearby land for the operation, which will use mostly woodwaste to make steam that turns a turbine generator to create electricity.

DTE Energy, a Detroit, Michigan-based utility, will buy the plant’s output under a 20-year agreement, according to the resolution approved for the financing by the Oakland County Board of Commissioners, Crain’s Detroit Business reported.

The project includes modifications to the existing boiler, as well as emissions upgrades to equipment and a rebuilt turbine. A 240,000-square-foot wood structure would be added to house new conveyors, magnets and a wood storage area.

DTE Energy purchased the facility, which was the powerhouse for the former General Motors Co.’s Fiero assembly plant, through a ground lease with RACER Trust, which retains ownership of the 14 acres.

The purchases by Traxys are still being negotiated, said Lynda Earhart, senior business development representative for Oakland County Economic Development Corp., which is providing the $28-million financing, reported Crain’s Detroit Business.

The primary source of this article is Crain’s Detroit Business, Detroit, Michigan, on April 22, 2012.

 

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.