West Virginia Alloys, Recycled Energy in energy efficiency deal

Westmont, Ill.'s Recycled Energy Development said today it signed an agreement to install one of its energy recycling systems at a plant owned by Charleston, W. Va.-based silicon producer West Virginia Alloys.

West Virgina Alloys is a unit of New York-based Globe Specialty Metals (AIM: GLBM).

Under the deal, Recycled Energy Development plans to invest $45 million to $55 million to recycle hot exhaust into 40 to 44 megawatts of electricity generation, which it said would offset one third of West Virginia Alloy's electric consumption.

"This project validates RED's mission of profitably reducing greenhouse gas emissions," said Thomas Casten, chairman of Recycled Energy Development.

"The cost savings help preserve and grow local manufacturing and the pollution savings reduce health and environmental expenses while mitigating climate change."

This project marks Recycled Energy Development's first deal under its recently announced partnership with private equity firm Denham Capital Management to invest $1.5 billion in energy recycling projects (see Forget the Gphone, here comes Gsolar).

Recycled Energy said it would install waste heat recovery boilers to capture energy from West Virginia Alloy's silicon furnaces, then convert the exhaust heat into steam, which in turn will drive a power generator.

The company said the project in West Virginia is expected to go into operation in 2010.

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