LYONS FALLS, NY -- CH Energy Group Inc. (CHG) has agreed to sell its Lyonsdale Biomass facility to ReEnergy Holdings LLC of Latham, NY.
CHG, a subsidiary of Central Hudson Enterprises Corporation, purchased the 22-megawatt plant in 2006. The plant burns wood-fired heat and power generation facility. The plant burns whole tree chips from forest thinning operations, as well as clean wood waste from pallet mills and other local secondary wood operations. The plant reportedly has the capacity to generate power required by approximately 10,000 homes.
"This divestiture is part of a new strategic direction announced late last year to focus on our core energy delivery businesses," said Steven Lant, chairman of the board, president and CEO of Central Hudson Enterprises. "We are in the process of divesting our renewable energy portfolio, and this transaction is an important step along our new path."
Larry Richardson, CEO of ReEnergy, said, "Our acquisition of the Lyonsdale Facility is consistent with our business strategy of acquiring, owning and managing solid fuel renewable energy facilities. With this acquisition, we look forward to continuing to provide clean, cost-effective renewable energy to homes, schools and businesses across the State of New York."
ReEnergy is an integrated waste fuel/biomass renewable energy company formed in 2008 that owns and operates a 31-megawatt tire-to-energy facility in Sterling, CT, along with two construction and demolition waste and waste wood processing facilities that service the eastern New England/Boston metropolitan area marketplace. The company also announced on March 17 that it signed a definitive agreement to acquire the co-generation assets at the Rumford, (ME), Paper Mill from a subsidiary of NewPage Corporation.
The sale of the Lyonsdale plant to ReEnergy Holdings is expected to close in May. Terms of the transaction were not disclosed.
Have something to say? Share your thoughts with us in the comments below.