Biomass Consolidation an Unlikely Prospect
3/18/2011

Summary:

Stoel Rives attorney John Eustermann discussed in Biomass Magazine the prospects for concerted consolidation in the biomass power industry. A number of energy companies have recently acquired biomass power plants, including Stoel Rives client Greenleaf Power LLC, which purchased three operating plants in California, with a combined output of more than 100 megawatts.

Eustermann said such acquisitions don't necessarily presage a wider wave of consolidation. "[Acquiring companies] are doing it because I think they have the ability to balance-sheet finance [the deal] and the ability either to take over good PPAs or acquire good PPAs from those entities that want to make sure they are in compliance with the renewable portfolio standard ("RPS")." He added that the attraction of adding a portfolio of assets in a state subject to an RPS is frequently a driver for such acquisitions.

"Acquisitions Atmosphere" was published by Biomass Magazine, February 22, 2011.

Read our client success feature regarding Greenleaf Power's January 2011 acquisition of Southern California's largest biomass plant.