Laidlaw gets financing for New Hampshire project

New York-based Laidlaw Energy Group said today that it received $5 million in debt financing for its planned New Hampshire biomass power plant.

The company announced plans in April to convert a former paper mill in Berlin, N.H., into a 50 megawatt woodchip-fired electricity plant (see Laidlaw to build 50 MW woodchip power plant in NH).

A joint project between Laidlaw Energy and New Hampshire's EcoPower, the reconfigured plant will use over 500,000 tons of biomass per year, according to Laidlaw.

New York's Greystone & Co. supplied today's financing, which is expected to be used to partially fund the acquisition and initial development of the project.

Laidlaw said the financing will not result in any dilution to its shareholders.

The company expects to close on the acquisition within the next 60 days.

After the closing, Laidlaw said it intends to file with the New Hampshire Siting Evaluation Committee in order to obtain the requisite permits for the biomass project.

The next step for Laidlaw after getting the permits, is closing on the balance of the financing for the project, including monetization of Federal Renewable Energy Production Tax Credits and long term debt financing.

Laidlaw said it has hired Greystone to arrange this further round of financing.

The company said it hopes to receive approval from the New Hampshire siting committee in the second half of 2008, which would put the project on target for commencement of operations in 2009.

Laidlaw is already pursuing a similar plant in New York (see Laidlaw asks shareholders for patience).