Thank you for sharing!

Your article was successfully shared with the contacts you provided.

TEMPE, AZ-Renergy Holdings Inc.’s Snowflake White Mountain Biomass Power Plant has begun providing commercial electricity to Phoenix-based Arizona Public Service and Salt River Project customers. The local company’s flagship plant is paving the way for similar plants, which will be bought and built throughout North America.

Located on 40 acres in Snowflake, AZ, the biomass power plant kicks out 24-megawatts of power to more than 9,000 homes in Arizona. Electricity is generated through a wood-burning boiler that uses wood-waste material from the area’s forest industry and waste-recycled paper fibers from Catalyst Paper Corp., which is next door to the plant. The standard biomass plant costs between $25,000 to $35,000 per megawatt to build.

The high cost is why Renergy Holdings’ management would prefer to acquire existing plants for its biomass efforts, though it isn’t ruling out ground-up efforts. “When we acquire an existing or idle plant, that costs us less than $1,000 per kilowatt,” explains Megan Meloni, Renergy’s director of investor relations. One-thousand kilowatts equals a megawatt.

Meloni tells GlobeSt.com that Renergy is looking at various opportunities for acquisition and design-build. She says LOIs have been signed for acquisition of two biomass plants in Northern California. “We look to acquire those plants by mid-year,” she comments. “One is operating today, and by acquiring that plant, it would become an immediate source or revenue.” Renergy is also examining two potential greenfield projects in northern Arizona that would involve ground-up construction of facilities similar to the Snowflake operation.

“Our strategy is to grow our business to become the leading independent power producer of biomass electricity in North America,” Meloni says. “Snowflake is the first, and our flagship.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Awards 2020Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.