Fibrominn, LLC a Subsidiary of Homeland Renewable Energy, LLC Completes a Sale-Leaseback and Financing with Powerminn 9090, LLC
16 December 2004 - 1:00AM
PR Newswire (US)
Fibrominn, LLC a Subsidiary of Homeland Renewable Energy, LLC
Completes a Sale-Leaseback and Financing with Powerminn 9090, LLC a
Herrick Family Controlled Affiliate in the Creation of the
Country's First Large-Scale Poultry-Litter Biomass Power Plant $202
Million in rated (BBB-/BB) debt financing arranged by HH Media, LLC
and McDonald Investments, Inc. (a subsidiary of Key Bank) with
industry leading institutional investors. NEW YORK, Dec. 15
/PRNewswire/ -- Homeland Renewable Energy LLC announced today that
the sale-leaseback and financing for its subsidiary Fibrominn LLC's
55 megawatt poultry-litter-fired power plant in Benson, Minnesota
is complete. The Fibrominn project is without equal -- the creation
of the country's first large scale poultry-litter power plant with
the potential to dramatically and positively alter the future of
the agricultural and energy community in Minnesota and other
forward looking states. Rupert Fraser, C.E.O. of Homeland Renewable
Energy LLC, said: "We are delighted to be able to announce the
completion of the financing portion of this project. It represents
the culmination of an enormous amount of hard work by a dedicated
team of people, including the City of Benson, our advisers and
lawyers, and our own staff. From today onwards, Fibrominn will
begin to build a plant which will be part of the Minnesota
agricultural community, working with the state's world-leading
turkey producers, for a very long time." The financing has been
structured by HH Media as an investment grade vehicle (Fitch Rated
BBB-/BB) packaged as a traditional Sale-Leaseback, with PowerMinn
9090, LLC, purchasing the capital plant and leasing it back to
Fibrominn, which will manage the construction and operation of the
plant, under a long term lease. Six of the leading investing
institutions in the power project finance market, led by the
Prudential Capital Group and John Hancock Financial Services, have
agreed to lend $202 million. Norton Herrick of PowerMinn Holdings
commenting on the closing stated "that this relationship is a coup
for my family, the citizens of Benson, Minnesota and for the future
of renewable energy in the United States. Our greatest source of
inspiration often springs from personal experiences, as individuals
and as members of a broader community; we seek to share our
enthusiasm for alternative renewable power and the promise of a
cleaner tomorrow." Full Notice to Proceed has today been issued to
the turnkey Contractor, SNC-Lavalin of Canada. SNC has already
commenced work on the site and it is anticipated that construction
and commissioning will last for approximately 30 months, with
initial operation expected to commence in February 2007 (month 26).
The plant will generate 55MW, enough power for about 60,000 homes,
from a total of about 700,000 tons of biomass fuels, around 90% of
which will be poultry litter. Editors' Notes Fibrominn LLC is
wholly owned by Fibrowatt LLC, which in turn is a 70% subsidiary of
Homeland Renewable Energy LLC ("HRE"). HRE is a renewable energy
development and operating company, which intends to become a
leading player in the biomass power marketplace. HRE intends to
pursue the opportunities to build biomass power plants in a number
of states, particularly states in which it can use the Fibrowatt
poultry-litter-combustion technology, which it licenses from
Fibrowatt Ltd of the UK. HRE was founded by a group of private
investors, including the co- founders of Fibrowatt Ltd. Fibrowatt
Ltd of the UK pioneered the use of poultry litter to create
electricity, building the world's first three such power plants
between 1990 and 1998. HRE's Fibrominn project represents the first
poultry-litter-fired power plant in the USA, and will form the
template for further plants to be built in intensive
poultry-growing areas. The Fibrominn Project comprises a 55MW
electricity generating plant using biomass fuels to produce power.
The plant will utilize over 700,000 tons per year of poultry litter
and other biomass fuels, producing heat which will generate steam
in a boiler to drive a turbine-generator. The process is
resource-conserving, since the only by-product is the ash from
combustion, which will be marketed as a nutrient-rich fertilizer.
Fibrominn has been developing the project for the last 4 years,
during which it has: * Entered into a 21 year Power Purchase
Agreement with Northern States Power. * Signed a turnkey
construction contract with SNC-Lavalin - the plant design is based
upon experience at three similar plants developed and operated by
Fibrominn's UK shareholder, Fibrowatt Limited, which are the
world's first three poultry-litter-fired power plants. * Signed
long term supply agreements with numerous poultry producers, under
which the poultry litter required by the plant will be procured. *
Purchased a 77-acre site and certain local utility services from
the City of Benson. Benefits of the project include: * Production
of renewable biomass energy, assisting Northern States Power in
meeting its biomass power obligations. * Providing an alternative
use to land application for poultry litter, assisting poultry
farmers with the management of their used litter and the associated
regulatory obligations for nutrient management. * Reducing the
potential for poultry litter to cause nutrient over-loading in
groundwater, which can lead to high levels of phosphorus and
nitrates in drinking water, lakes and rivers. * Recycling of the
nutrients in the poultry litter, in the form of the fertilizer
derived from the ash resulting from the combustion of the poultry
litter. * Reduction in greenhouse gas production through the
displacement of existing fossil-fueled generation by carbon-neutral
biomass electricity. * Providing rural jobs in West Central
Minnesota - including highly skilled jobs for operators of the
plant and indirect jobs in transportation and support services such
as maintenance and engineering. * Helping protect poultry industry
jobs by enhancing the future environmental sustainability of the
Minnesota turkey industry. For further information, see:
http://www.fibrowattusa.com/ or contact John Halle or Charles
Grecco at HH Media, LLC at (603) 964-2820. CONTACT: Rupert Fraser,
Homeland at (651) 260 8451 Carl Strickler, Fibrowatt at (215) 321
4866 John Halle, HH Media at (603) 964-2820 Norton Herrick,
Powerminn at (561) 241-9880 DATASOURCE: Homeland Renewable Energy,
LLC CONTACT: Rupert Fraser of Homeland, +1-651-260-8451, or Carl
Strickler of Fibrowatt, +1-215-321-4866, or John Halle of HH Media,
+1-603-964-2820, or Norton Herrick of Powerminn, +1-561-241-9880
Web site: http://www.fibrowattusa.com/
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