Energy Holdings to acquire coal and waste fuel power generation
Energy Holdings Limited LLC (EHL) has signed a Letter
of Intent (LOI) to acquire a 25 megawatt electric generation plant from
Goodland Energy Resources, LLC (GER) for $42.0 million.
The plant is located in Sherman County, Kansas and
is approximately 80 percent complete and designed to burn coal and waste
derived fuel that normally is disposed of in municipal landfills. The
Goodland plant will provide power and steam to a newly constructed ethanol
facility and other industrial facilities in the area and is expected
to be fully operational by June 30, 2008.
The facility is designed to be fueled by coal and biomass,
but can also generate electricity and industrial steam from diversified
fuel sources such as railroad ties, tires and other waste products. Since
the plant utilizes waste for fuel, emissions credits will be created
- an important element of EHL’s desire to produce eco-friendly energy
and an asset with significant future value.
The LOI provides EHL with exclusivity for a specified
period and is contingent upon completion of final due diligence, entering
into a definitive purchase and sale agreement for the plant, obtaining
acquisition financing and other closing conditions.