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Fibrominn, LLC a Subsidiary of Homeland Renewable Energy, LLC
Completes a Sale-Leaseback and Financing with Powerminn 9090, LLC a Herrick
Family Controlled Affiliate in the Creation of the Country's First Large-Scale
Poultry-Litter Biomass Power Plant
$202 Million in rated (BBB-/BB) debt financing arranged by HH Media, LLC and
McDonald Investments, Inc. (a subsidiary of Key Bank) with industry leading
institutional investors.
NEW YORK, Dec. 15 /PRNewswire/ -- Homeland Renewable Energy LLC announced
today that the sale-leaseback and financing for its subsidiary Fibrominn LLC's
55 megawatt poultry-litter-fired power plant in Benson, Minnesota is complete.
The Fibrominn project is without equal -- the creation of the country's first
large scale poultry-litter power plant with the potential to dramatically and
positively alter the future of the agricultural and energy community in
Minnesota and other forward looking states.
Rupert Fraser, C.E.O. of Homeland Renewable Energy LLC, said: "We are delighted
to be able to announce the completion of the financing portion of this project.
It represents the culmination of an enormous amount of hard work by a
dedicated team of people, including the City of Benson, our advisers and
lawyers, and our own staff. From today onwards, Fibrominn will begin to build
a plant which will be part of the Minnesota agricultural community, working
with the state's world-leading turkey producers, for a very long time."
The financing has been structured by HH Media as an investment grade vehicle
(Fitch Rated BBB-/BB) packaged as a traditional Sale-Leaseback, with PowerMinn
9090, LLC, purchasing the capital plant and leasing it back to Fibrominn, which
will manage the construction and operation of the plant, under a long term
lease. Six of the leading investing institutions in the power project finance
market, led by the Prudential Capital Group and John Hancock Financial
Services, have agreed to lend $202 million.
Norton Herrick of PowerMinn Holdings commenting on the closing stated "that
this relationship is a coup for my family, the citizens of Benson, Minnesota
and for the future of renewable energy in the United States. Our greatest
source of inspiration often springs from personal experiences, as individuals
and as members of a broader community; we seek to share our enthusiasm for
alternative renewable power and the promise of a cleaner tomorrow."
Full Notice to Proceed has today been issued to the turnkey Contractor,
SNC-Lavalin of Canada. SNC has already commenced work on the site and it is
anticipated that construction and commissioning will last for approximately 30
months, with initial operation expected to commence in February 2007 (month
26). The plant will generate 55MW, enough power for about 60,000 homes, from a
total of about 700,000 tons of biomass fuels, around 90% of which will be
poultry litter.
Editors' Notes
Fibrominn LLC is wholly owned by Fibrowatt LLC, which in turn is a 70%
subsidiary of Homeland Renewable Energy LLC ("HRE"). HRE is a renewable energy
development and operating company, which intends to become a leading player in
the biomass power marketplace.
HRE intends to pursue the opportunities to build biomass power plants in a
number of states, particularly states in which it can use the Fibrowatt
poultry-litter-combustion technology, which it licenses from Fibrowatt Ltd of
the UK. HRE was founded by a group of private investors, including the co-
founders of Fibrowatt Ltd.
Fibrowatt Ltd of the UK pioneered the use of poultry litter to create
electricity, building the world's first three such power plants between 1990
and 1998. HRE's Fibrominn project represents the first poultry-litter-fired
power plant in the USA, and will form the template for further plants to be
built in intensive poultry-growing areas.
The Fibrominn Project comprises a 55MW electricity generating plant using
biomass fuels to produce power. The plant will utilize over 700,000 tons per
year of poultry litter and other biomass fuels, producing heat which will
generate steam in a boiler to drive a turbine-generator. The process is
resource-conserving, since the only by-product is the ash from combustion,
which will be marketed as a nutrient-rich fertilizer.
Fibrominn has been developing the project for the last 4 years, during which it
has:
* Entered into a 21 year Power Purchase Agreement with Northern States
Power.
* Signed a turnkey construction contract with SNC-Lavalin - the plant
design is based upon experience at three similar plants developed and
operated by Fibrominn's UK shareholder, Fibrowatt Limited, which are the
world's first three poultry-litter-fired power plants.
* Signed long term supply agreements with numerous poultry producers,
under which the poultry litter required by the plant will be procured.
* Purchased a 77-acre site and certain local utility services from the
City of Benson.
Benefits of the project include:
* Production of renewable biomass energy, assisting Northern States Power
in meeting its biomass power obligations.
* Providing an alternative use to land application for poultry litter,
assisting poultry farmers with the management of their used litter and
the associated regulatory obligations for nutrient management.
* Reducing the potential for poultry litter to cause nutrient over-loading
in groundwater, which can lead to high levels of phosphorus and nitrates
in drinking water, lakes and rivers.
* Recycling of the nutrients in the poultry litter, in the form of the
fertilizer derived from the ash resulting from the combustion of the
poultry litter.
* Reduction in greenhouse gas production through the displacement of
existing fossil-fueled generation by carbon-neutral biomass electricity.
* Providing rural jobs in West Central Minnesota - including highly
skilled jobs for operators of the plant and indirect jobs in
transportation and support services such as maintenance and engineering.
* Helping protect poultry industry jobs by enhancing the future
environmental sustainability of the Minnesota turkey industry.
For further information, see: http://www.fibrowattusa.com/ or contact John
Halle or Charles Grecco at HH Media, LLC at (603) 964-2820.
CONTACT: Rupert Fraser, Homeland at (651) 260 8451
Carl Strickler, Fibrowatt at (215) 321 4866
John Halle, HH Media at (603) 964-2820
Norton Herrick, Powerminn at (561) 241-9880
DATASOURCE: Homeland Renewable Energy, LLC
CONTACT: Rupert Fraser of Homeland, +1-651-260-8451, or Carl Strickler of
Fibrowatt, +1-215-321-4866, or John Halle of HH Media, +1-603-964-2820, or
Norton Herrick of Powerminn, +1-561-241-9880
Web site: http://www.fibrowattusa.com/