Convergen Energy buys Michigan biomass plant

US energy company Convergen Energy has bought the L’Anse Warden Electric Co. biomass plant in Michigan from Traxys Power Group at an undisclosed price.

L’Anse Warden is a 20MW combined heat and power (CHP) plant in Michigan's Upper Peninsula that supplies electricity and steam to the CertainTeed plant in L’Anse, Milwaukee Journal Sentinel reports.

Convergen said the acquisition is part of its strategic growth plan to buy power plants and expand in the renewable energy market.

The company makes renewable alternative fuels that can be substituted in boilers for coal and other fossil fuels.

"The L’anse Warden plant has a proven history of producing renewable power and provides a valuable source of power generation in the Upper Peninsula. We look forward to being a part of the community and providing reliable power generation in the area for years to come," said Ted Hansen, CEO of Convergen Energy in a statement.

The agreement was announced one week after the former plant owner received a new permit to operate for the next five years.

That permit from the Michigan Department of Environmental Quality (DEQ) was stalled amid concerns about pollution levels at the plant linked to a chemical used to treat railroad ties.

After receiving complaints last year, L’Anse Electric stopped burning railroad ties treated with pentachlorophenol and the plant will not be allowed to burn ties treated with the chemical going forward.

While issuing the permit, the DEQ also resolved concerns that the plant was violating the Clean Air Act.