Private investment company Pacolet Milliken has completed the acquisition of Piedmont Green Power, an affiliate of Atlantic Power & Utilities, for an undisclosed amount.
Piedmont is a 55MW biomass-fired power plant in Barnesville, Georgia, 70 miles (112km) from the city of Atlanta.
Piedmont operates the power plant using 600,000 tonnes of woody biomass feedstock each year, sourced entirely from wood waste.
Piedmont adheres to federal and state standards and participates in the sale of renewable energy credits on the open market.
Since beginning commercial operations in 2013, Piedmont has sold power to Georgia Power through a long-term PPA.
The PPA includes both capacity and energy payments and will end in September 2032.
Energy revenue from Piedmont is tied to indices that reflect the cost of procuring biomass fuel. This is expected to significantly reduce the risk of biomass fuel price volatility.
Pacolet Milliken CEO William Crawford stated: “This transaction represents a major milestone in continuing the growth and diversification of Pacolet's power and infrastructure portfolio and meets both our financial and ESG [environmental, social and governance] goals.
“Piedmont will be an anchor long-term asset and we look forward to working with our new employees, partners and local regulatory authorities to continue Piedmont's success in the city of Barnesville and the state of Georgia.
“We believe that Piedmont is a market-leading biomass power plant in terms of safety, sustainability and operating efficiency, and we expect to maintain that reputation.”
Pacolet power and infrastructure co-head and chief investment officer Lance Jordan stated: “We continue to see opportunities in today's energy environment to acquire high-quality assets that meet our sustainability goals and enhance shareholder value.
“This transaction establishes a significant foothold in the biomass power space and is an excellent addition to our waste-to-value business segment, which includes a growing renewable natural gas portfolio. We will continue to pursue additional waste-to-value investments and projects throughout the US.”
Manulife provided the financing for the acquisition through its corporate finance team. Vinson & Elkins provided legal advisory and Genesis Capital acted as debt financing arranger.
