$13 million deal reached on South Carolina biomass plants

Two biomass plants in South Carolina are to be acquired by Atlantic Power Corporation. One is located in Allendale and the other in Harleyville. Both plants were originally owned by EDF Renewables Inc. and were sold together for a total of $13 million (approximately €11.10 million).

The deal is expected to be finished by the third or fourth quarter of 2019 after a restructuring of the plants’ ownership structure by EDF. The purchase of the plants has been funded by Atlantic Power’s discretionary cash.

Designed in exactly the same way, both plants have been operating since 2013; both use biomass fuel that mainly consists of a mill and harvesting residues.

President and CEO of Atlantic Power, James J. Moore has said on the deal, “This acquisition represents our second external growth investment following a three-year business restructuring process.”

He also spoke about their other biomass projects, “We own four biomass plants currently, and we have considerable operational and commercial experience in this area. If we can deliver targeted operational and financial results for both South Carolina plants, the returns should be very attractive compared to other potential uses of our discretionary cash. In addition, the long remaining term of the two PPAs provides a stable base of cash flows."