Georgia-Pacific and Boralex finalize sale of power plant
May 17, 2004 By Pulp & Paper Canada
Georgia-Pacific and Boralex have completed the final steps in the sale of Boralex Athens Energy Inc., Maine biomass…
Georgia-Pacific and Boralex have completed the final steps in the sale of Boralex Athens Energy Inc., Maine biomass generation facility. The power plant’s assets will be relocated to Georgia-Pacific’s mill in Old Town, Maine. The convection is an integral component of a mandate shared by both the State of Maine and Georgia-Pacific to reduce energy costs at the Old Town Mill.
The transaction is another step in the course that was established by an act of the Maine Legislature last year, when it passed a resolve authorizing the State of Maine to purchase the West Old Town landfill. The State was also accredited to select an operator to run the facility, while producing the funds necessary for the biomass project.
The sale comes on the heels of an announcement made in February 2004 that Casella Waste Systems and the State of Maine entered into an operating services agreement that sanctioned Casella to assume the operation of the West Old Town landfill. Georgia-Pacific banked $26 million from the sale of the landfill and will now employ those funds to purchase and reinstall the biomass boiler, a move that will lower energy costs, one of the biggest obstacles to the mill’s economic viability.
Boralex president and CEO is confident the sale will benefit all implicated parties. “The sale of the assets of the Athen’s facility, which has been shutdown for the last two years, is in line with the implementation of Boralex’s strategic plan aimed at maximizing the performance of its U.S. wood-residue power stations and will benefit the Old Town Mill’s operations.”
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