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Acqn of next dairy biogas to power facility in US
Acqn of next dairy biogas to power facility in US.
About this update from Invinity Energy Systems Plc
[{"type":"text","content":"\n \nRNS Number : 9606H Camco Clean Energy PLC 27 June 2013 \n \n\nCamco Clean Energy plc\nAcquisition of next dairy biogas to power facility in US\n \nCamco Clean Energy plc (\"Camco Clean Energy\" or the \"Company\") today announces that it has agreed to acquire an operating dairy biogas to power facility for up to $3.2m in cash subject to the satisfactory transfer of the environmental permits and the land lease with the dairy owner (the \"Acquisition\").\n \nThe Facility has an installed capacity of 2.1 MW and is situated on a 10,000 plus head dairy near Twin Falls, Idaho (the \"Facility\"), less than 30 miles from the Company's existing operating 4.5 MW biogas facility near Jerome, Idaho (the \"Jerome Facility\").\n \nThe Facility, which utilises an anaerobic digester, was originally developed by Cargill, Incorporated (\"Cargill\") and was initially commissioned in 2008. It is currently being operated and maintained by the same contractor managing the Jerome Facility which will continue post acquisition. \n \nThe manure supply and Facility's site lease with the dairy expires in 2022. The lease can be renewed for up to 12 years at the option of the Company subject to the same terms and conditions following which the Facility will revert to the dairy owner.\n \nThe Facility's power purchase agreement with the local investment grade utility expires in 2020 and is eligible to be extended at published rates at the time of extension. The Facility generated approximately $300,000 of revenues from electricity sales in the first four months of 2013. Monthly power rates are seasonal under the terms of the power purchase agreement with some of the higher monthly rates occurring in the second half of the year. In addition, carbon credits generated by the Facility are eligible to be converted into California Carbon Offsets. \n \nThe Acquisition is being effected through the purchase of the assets from Cargill and the assignment of the agreements necessary to continue the operation of the Facility. These include the equipment and fixed assets, inventory, intangible assets (including carbon credits), intellectual property, environmental and other permits, as well as the land lease, interconnection agreement and power purchase agreement. The consideration of up to $3.2m will be sett...