Greenleaf Power's Desert View Power plant in Mecca, California, begins supplying Imperial Irrigation District as part of agreement to provide 45 MW/year of power for annual cost of US$35M for next 10 years
May 1, 2012
– Greenleaf Power, an owner and operator of green energy plants, today began delivering green energy to Imperial Irrigation District (IID).
Last month the two parties agreed that Greenleaf’s Desert View Power plant, located in the northern end of Imperial Irrigation District’s service area, will provide 45 megawatts of baseload power to IID over the next decade. This is enough power to supply the needs of 45,000 households with clean renewable electricity.
“We are pleased to partner with the Imperial Irrigation District on this endeavor,” said Hugh Smith, president and CEO of Greenleaf Power. “This long-term arrangement will ensure reliable renewable power for the region as well as preserve local jobs.”
The agreement, which was approved unanimously by the IID Board of Directors, requires the Desert View Power plant to provide 45 megawatts of green energy at an annual cost of roughly $35 million.
The arrangement benefits both parties. Greenleaf Power secures a long-term deal for its Desert View facility. Meanwhile, with this agreement makes up 6% of Imperial Irrigation District's energy portfolio.
“This agreement is an important step for Desert View Power as it establishes a secure long-term base for the plant and our valued employees,” said Hugh Smith.
Desert View Power, formerly Colmac Energy, produces up to 47 megawatts of green energy. The Desert View facility is one of the largest biomass power plants in California and was one of POWER magazine’s “Top 6 Renewable Plants” in December 2010. The facility is located in Mecca and has been in operation since 1992. The facility uses a circulating fluidized bed technology, making it one of the more advanced biomass power facilities in North America. The plant currently employs 39 people and also indirectly creates jobs for an additional 130 people delivering and processing biomass fuel.
Desert View Power converts discarded wood waste into renewable energy. The facility collects wood waste from agricultural, construction and demolition activities. Utilizing these domestic energy resources also avoids the pollution that would result from open burning or landfilling of this wood waste. These materials consist of clean wood products from construction and demolition sites, tree prunings and stumps as well as larger vines, corn and rice shucks. Using proven technologies, this material is converted into electricity, which is “carbon-neutral” and supported by California state environmental agencies.
Last month, the California Public Utilities Commission also approved amendments to the contracts between Pacific Gas & Electric (PG&E) and Greenleaf Power’s Honey Lake and Eel River plants. The amendments provide for 3 to 5 years of price stability and help stabilize the operations at both plants.
“With these recent changes, Greenleaf Power has secured the capability to continue to provide reliable, renewable energy for many years to come,” said Hugh Smith.
The Honey Lake power plant is based in northeastern California in the town of Wendel (approximately 25 miles east of Susanville). The plant was built in 1989 with Greenleaf Power taking ownership in 2010. The plant produces up to 30 megawatts of green energy. The plant also utilizes underground geothermal resources, making the plant a very efficient hybrid biomass/geothermal energy facility. The Honey Lake plant is one of the largest private employers in the region. The plant currently has 25 employees and is indirectly responsible for an additional 85 jobs in the region.
The Eel River plant is based in California's North Coast region about 30 miles south of Eureka. The plant was built in 1988 by Pacific Lumber. Greenleaf Power acquired the plant in 2010. The plant produces up to 28 megawatts of green energy. Eel River also provides electricity and heat to the nearby sawmill and town, as this plant and its predecessors have done since before the White House had electricity. The plant currently has more 30 employees and is indirectly responsible for an additional 85 jobs in the region. The plant is also important regionally because there are few local power generation facilities and limited ability to import electric power from outside the region.
About Greenleaf Power
Greenleaf Power acquires, develops, owns and operates power projects that utilize residual biomass as fuel. It currently owns and operates more than 100 megawatts of biomass generating assets in California. Greenleaf Power has established independent management and relocated its corporate headquarters from Illinois to Sacramento, Calif. Today the company employs more than 100 people who specialize in green energy production and, according to industry standards, an additional 300 are dedicated indirect jobs – mostly in the gathering, processing, and delivery of our biomass fuel. Greenleaf Power is backed by Denham Capital, a leading global energy-focused private equity firm. For more information about Greenleaf Power, visit www.greenleaf-power.com.
About Denham Capital
Denham Capital is a leading global private equity firm with offices in Boston, Houston, Short Hills (New Jersey), London, São Paulo and Singapore. With approximately $7.3 billion of invested and committed capital, funds that Denham Capital advises make direct investments in all segments of the energy and commodities value chain including power and renewable, oil and gas, mining and metals and energy-related infrastructure and services. Denham Capital typically target investments between $50 million and $200 million and invest globally, with investments currently in North America, South America, Europe, Africa, Asia, and Australia, and across all parts of the capital structure and all stages of the corporate and asset life cycle, from the development and growth stage to the operating stage. For more information about Denham Capital, visit www.denhamcapital.com. Denham Capital does not provide investment advisory services to the public.