Focusing on originating and investing in sustainable energy projects, announced it has closed on senior secured financing for a biomass power generation facility located in Blue Lake
The facility has a capacity of 12.5-megawatts and can generate enough electricity to power 25,000 homes.
Harvey Abrahams, a principal at Akeida Capital Management, LLC, said, “This is an exciting time to invest in renewable energy. Once again, Akeida has fulfilled its environmental investment mandate while bolstering renewable power generation in the state of California. We are delighted to be involved in a project that is the recipient of federal stimulus funds during this critical juncture for American energy independence.”
Akeida provided a $10.5 million senior secured loan facility to complete construction for the Blue Lake plant, which is in the final stages of a refurbishment process that began in September 2008. Blue Lake Power has entered into a 10-year power purchase agreement with San Diego Gas and Electric to sell all of the electricity generated by the plant.
Glenn Zane, a principal at Blue Lake Power, said, “Finalizing this loan will allow us to restart the Blue Lake plant and create a profitable and environmentally beneficial business that creates 50 long-term, high paying jobs for the area.”
California’s Renewable Portfolio Standards (RPS), one of the most aggressive in the United States, directs investor-owned utilities to provide 20% of their energy from renewable sources by 2010. The Blue Lake plant will add approximately 93,840 MWh of renewable power annually to the state’s grid and provide significant economic and environmental benefits for the city of Blue Lake and the state of California. The plant will burn woody waste as its main fuel source for a conventional boiler which will power a steam-turbine generator.
Blue Lake Power also received a $2 million grant from the United States Forest Service as part of the American Recovery and Reinvestment Act of 2009. The plant’s fuel procurement plan furthers the Forest Service’s efforts to improve forest health.
Bill Rice, of the United States Forest Service’s Lower Trinity District, said, “The restart of the Blue Lake facility establishes a market for non-merchantable material that in the past used to just pile and burn. By partnering with Blue Lake, we add jobs in our national forests and protect the community of Willow Creek.”
Brad Seaberg, a Registered Professional Forester (RPF) and principal of Blue Lake Power, said, “The Forest Service has provided key support for our start-up. We look forward to working with the Forest Service and as well as private landowners to reduce hazardous fuels, and provide stability to the woods industry and local communities.”
Akeida Capital Management, LLC was led by David Kandolha and Travis Windholz and advised on this transaction by Blank Rome, LLP. The Blank Rome team was led by Sarah Hewitt of Blank Rome’s New York office and included a cross-discipline team of attorneys, including Margaret Hill of Blank Rome’s Philadelphia office on environmental matters, William Small of Blank Rome’s Los Angeles office on real estate matters, and Nicolas Giannasca in New York.
About Akeida Capital Management
Akeida Capital Management, LLC and the Akeida Environmental Funds invest in market solutions that improve the environment. Akeida originates and finances projects that reduce greenhouse gas emissions and generate alternative energy in industrialized and developing countries. In addition, Akeida actively manages a portfolio of diversified environmental assets including Kyoto and voluntary carbon offsets, U.S. based renewable energy credits and emission reduction credits.
Akeida secures unique opportunities for investors by providing custom financial structures for renewable energy, emission reductions and energy efficiency projects. Akeida’s environmental finance expertise provides sound financing solutions while ensuring the environmental integrity of each asset in its portfolio. All assets in Akeida’s portfolio are validated using industry best practices ensuring real, quantifiable and permanent benefits for the environment while contributing towards sustainable development. For more information about Akeida Capital Management, visit http://www.akeidacapital.com/.