NEW YORK--(BUSINESS WIRE)--Akeida Capital Management, LLC an environmental asset management firm focused on investing in renewable energy infrastructure, announced it has closed on a junior secured financing of a waste wood-fired biomass electric generation plant in Lufkin, Texas. The 57-megawatt facility is the first biomass plant to be built in Texas.
Akeida provided a $14.1 million junior loan to Aspen Power, LLC to complete construction of the plant which began in late 2008. Aspen Power’s sister company, Angelina Fuels, will provide the plant with approximately 1,500 tons of biomass per day from timber harvesting, sawmill and municipal cleanup activities in and around Lufkin. In addition to improving forest health, the Aspen Power facility will create approximately 50 new jobs for local residents.
“The Aspen Power facility is a unique source of renewable energy in the state of Texas. We are excited to participate in this landmark project which will add substantially to the local economy, support sustainable waste management practices and improve forest health,” said Akeida’s Director, Travis Windholz.
Texas’ Renewable Portfolio Standard (RPS), one of the earliest enacted in the United States requires investor-owned and municipal utilities to obtain new renewable energy capacity based on market share of energy sales. In 2005, Texas expanded its RPS goal to 10,000 MW by 2020 with at least 500 MW generated by non-wind resources.
“Akeida worked with us to provide the additional capital we needed to complete construction and bring online the first biomass plant in Texas,” said Aspen Power President Neil Leibman.
Aspen Power will interconnect to the Electric Reliability Council of Texas (ERCOT) electric grid. Unlike the intermittent wind resources that make up the majority of Texas’ renewable energy supply, the Aspen Power plant is a base load provider generating a steady flow of renewable power for the grid.
Akeida Capital Management, LLC and the Akeida Environmental Funds invest in renewable energy infrastructure projects across North America. With over 50 years of experience in energy and environmental finance, Akeida’s principals generate attractive risk adjusted returns for investors by delivering custom financial solutions to qualified projects. Akeida invests opportunistically across the capital structure and specializes in providing senior secured, convertible and mezzanine debt and preferred equity financing solutions.
For more information, visit http://www.akeidacapital.com/.