Atlantic Power closes acquisition

Independent power producer Atlantic Power Corp. has closed the acquisition of a Cadillac, Michigan-based biomass plant and 100% of the membership interests in the facility’s operating company Cadillac Renewable Energy in a $77 million (€58.5 million) deal.

Of the $77 million, $34 million will consist of cash, while the remaining $43 million will be paid off during the term of the power purchase agreement. This agreement will see Consumers Energy purchase electricity from the plant until 2028.

Following the acquisition Rollcast Energy, the majority-owned affiliate of Cadillac, is set to manage and maintain by plant. According to Atlantic Power, the deal will bring in between $3.5 million and $4.5 million a year from next year onwards.

Prior to this deal the plant, which was opened in 1993, processes around 325,000 tonnes of wood a year. It was previously owned by Olympus Power and operated by Delta Power Services.

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