May 12, 2008
New York-based alternative energy power plant developer Laidlaw Energy Group Inc. has agreed to buy the former Fraser Paper Co. pulp mill in Berlin N.H. for the purpose of converting the site to a biomass-to-energy facility.
Laidlaw Energy Group (OTC: LLEG) has created an affiliate, Laidlaw Berlin BioPower LLC, to acquire the site from the current owner, North American Dismantling Corp., which purchased the facility from Fraser in May 2006. Financial terms of the acquisition were not disclosed, but according to the company, Laidlaw "has provided a significant 'hard money' deposit" in anticipation of the deal.
Executives expect the acquisition to close within 90 days.
The Berlin project aims to convert the former paper mill into a biomass-fired power plant capable of generating 60 megawatts of renewable power through the use of 700,000 tons of clean wood biomass chips per year. The project involves a capital investment of more than $100 million from Laidlaw and other investors, which is being managed by HH Capital Advisors LLC, a North Hampton, N.H.-based real estate investment firm.
Among the assets to be acquired by Laidlaw is the facility's Babcock & Wilcox boiler, which was installed by Fraser in 1993 at a cost of nearly $100 million. The boiler will offer a steam capacity of 600,000 pounds per hour after biomass conversion, according to documents on Laidlaw's website.
According to a Laidlaw statement, the new facility will employ 40 people directly and create more than 500 indirect jobs. Once completed, it is expected to be the largest wood chip-burning plant in North America.