US GreenHunter sells biomass power plant for $5.7m

12 February 2009 17:39  [Source: ICIS news]

HOUSTON (ICIS news)--US biodiesel producer GreenHunter Energy sold its biomass power plant for $5.7m (€4.4m) to improve liquidity, the company said on Thursday.

The Grapevine, Texas-based company said it sold the 14 megawatt power plant in Telogia, Florida, in an all-cash deal to Multitrade Telogia of Virginia. GreenHunter bought the 19-year-old wood-waste-fired plant for $2.5m in cash in September 2008, at the time saying it had budgeted $8.8m for renovation.

“The sale of this non cash-flow producing asset will allow our company to improve our liquidity position as well as redeploy our capital in a more efficient manner,” GreenHunter president and chief executive officer Gary Evans said.

Multitrade was formed on 8 January, according to Virginia government records. Attempts to reach it were unsuccessful.

GreenHunter is the largest biodiesel prouder in the US, with 105m gal/year of capacity at its Houston refinery. The company owns a biomass-fired power plant in California.

($1 = €0.78)

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By: Ben Lefebvre
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