High Efficiency Plants in California and Massachusetts will Provide Clean and Reliable Power for Large Food Processing Facilities
Waltham, MA, May 31, 2005 – New Energy Capital Corp. and Energy and Power Solutions, Inc., today announced the financial close of three cogeneration facilities at large food processing plants: one in Southern California and two in Massachusetts. Each project consists of a 2-megawatt cogeneration facility. The facilities will provide electricity and thermal energy to the dairy food processing operations thereby reducing energy costs and lowering air pollution and greenhouse gas emissions.
New Energy Capital led the financing and secured an $8.0 million senior debt facility from Banknorth, N.A. New Energy Capital is providing the equity, undertaking financial and asset management functions, and will own a majority stake in each project. Energy and Power Solutions will design, construct and manage the three projects under “turnkey” construction and management services contracts and also hold a minority stake in the projects.
Daniel Goldman, New Energy Capital’s Chief Financial Officer said, “We are excited to have led one of the first true non-recourse project financing of small-scale cogeneration projects and look forward to providing lower cost and more reliable energy once construction is completed. We believe that the strong contractual structure, highly capable construction and operations contractors, and attractive market environment make these projects compelling investment opportunities.”
Jay Zoellner, CEO of Energy and Power Solutions said, “Our partnership with New Energy Capital brought together financial, technical and managerial resources for our customer who is interested in controlling energy production costs and increasing the reliability of its energy supply, all without having to make major capital investments. It’s a challenging time for industrial and commercial customers who have significant exposure to energy price volatility. Our cost-effective solutions and proven template reduce the impact of these uncertainties.”
The projects will employ natural gas-fired engines with heat recovery systems to generate electricity and thermal energy. By producing both power and heat in the same units the plants will provide energy to the processing plants far more efficiently than through separate electricity procurement and thermal production. On-site electricity generation is also expected to reduce the exposure of the host facilities to potential electricity outages and, by increasing energy efficiency, cut overall air pollution and greenhouse gas emissions.
About the Sponsors:
New Energy Capital Corp. (www.newenergycapital.com) is a New England-based company that invests in, owns and operates renewable energy and distributed generation projects. The company is funded by VantagePoint Venture Partners (www.vpvp.com), one of the nation’s largest and most active venture capital firms, and the California State Teacher’s Retirement System (CalSTRS).
Energy and Power Solutions, Inc. (www.energynpower.com) provides customer oriented, financially compelling solutions to complex energy and power issues. The company has offices in Costa Mesa and Sacramento, CA and projects throughout the U.S.