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RED Acquires California Biomass Power Plant

Today’s Energy Solutions
June 10, 2010

Chicago, IL - Recycled Energy Development (RED) has acquired the 30-megawatt Honey Lake biomass power plant in Wendel, Calif.

Following acquisition, RED hopes to increase the plant's efficiency and clean energy output. Built in 1989, the Honey Lake plant leverages nearby geothermal energy to help generate electricity from a biomass feedstock of forest thinnings, logging residue, mill wastes and other waste wood. One of the area's largest private employers, the facility sells its electricity under long-term contract to Pacific Gas & Electric.

"Profitably reducing greenhouse gases is the key to limiting climate change," said Hugh Smith, president of RED Holding Company, LLC. "Improving this plant's already efficient use of biomass waste as a source of baseload power can only help achieve those goals."

RED plans to make a significant capital investment and put its team's extensive clean energy expertise to work enhancing the plant's efficiency and production. Among other improvements, RED will evaluate installing a waste heat recovery system that could significantly increase the plant's output of renewable energy. Potential project enhancements could also reduce California CO2 emissions by 44,000 metric tons per year. That is the equivalent of taking more than 8,000 cars off the road.

This acquisition is part of RED's strategic partnership with Denham Capital Management to develop and manage a portfolio of clean energy projects.