green and sustainable business

Renew Energy has plant for sale; BioEnergy Development opt for biomass

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Renew Energy could close Wisconsin plantrenewenergy

Ethanol producer Renew Energy LLC, which filed for Chapter 11 protection under the US Bankruptcy Code in late January, announced today that it will close or sell its 130 mgy ethanol plant in Jefferson, WI if a buyer cannot be found. The sale or closure will take effect between May 18 and May 31, the company said, and would likely result in the layoff of the plant’s entire workforce of 80.

The company is a Wisconsin limited liability company with five members, each holds a 20 percent interest in the company.

For its most recent fiscal year, Renew Energy generated revenue of about $184 million. As of the Jan. 30 bankruptcy filing, it had liabilities of more than $150 million (of which $37 million is unsecured trade debt). It retained William Blair & Company L.L.C. to assist in locating lenders for a DIP facility and in soliciting purchasers of the company’s assets.  In the interim, the company had negotiated a temporary DIP facility in the amount of $2.5 million from West Pointe Bank.

biofuel3BioEnergy Development goes with biomass

BioEnergy Development Company, based in Fishers, IN, said late Friday that it signed a letter of intent with an area utility company and secured land options for the development and construction of a biomass electric generation plant.

The proposed plant BioEnergy Power LLC, will be located on a coal strip mine site in Clay County. The plant is expected to employ 25 to 30 full time workers upon completion.

The new plant will generate approximately 27 megawatts of electricity from wood waste that was previously provided to a paper plant in Terre Haute. The plant closed in 2007; subsequently, a Purdue University study funded by the Indiana Energy Department identified “green” energy production as the highest and best of use of wood wastes.

BioEnergy is in negotiations with a wood waste aggregator to supply the plant. Most wood waste for the plant will come from within a 100-mile radius of the proposed site. According to the U.S. Forest Service, the $17 billion per year Indiana hardwood industry has generated 1.2 million tons of annual waste for the past 25 years.

To qualify for green energy credits issued by the Environmental Protection Agency, and to be certified by the U.S. Department of Energy, this plant will use only wood waste and other renewable waste biomass in power generation. To further lower the plant’s carbon footprint, BioEnergy Development is in discussions with other companies to capture carbon dioxide for use in developing other types of energy.

BioEnergy Power LLC said it intends to complete the permitting process and begin construction by fall, 2009 complete construction by the end of 2010.


Written by William DiBenedetto

20 April, 2009 at 10:38 am

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