NewPage's Rumford Paper to Sell Cogen Energy Assets to ReEnergy
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NewPage Corp., Miamisburg, Ohio, USA, the largest coated paper manufacturer in North America, announced this past week that its subsidiary, Rumford Paper Co., based in Rumford, Maine, will sell its cogeneration energy assets to a unit of ReEnergy Holdings LLC,Latham, N.Y., a company that specializes in integrated biomass waste fuel renewable energy. The purchase price for the assets is $61,000,000. The transaction is subject to regulatory approvals and is expected to close in mid 2011.
The transaction contemplates a long-term, symbiotic relationship between Rumford and ReEnergy. Following the closing, ReEnergy will operate the acquired assets to provide energy to the Rumford mill in the form of electricity and thermal energy. In turn, Rumford's pulp and papermaking process will supply ReEnergy with the sustainable biomass fuel supply needed to operate the cogeneration assets.
"The transaction represents an opportunity for the Rumford mill to realize value from its green energy assets and to focus on its core business of making high quality paper," said George Martin, president and CEO of NewPage. "We are looking forward to working closely with ReEnergy in this new endeavor," added Gerald LeClaire, mill manager, Rumford Operations.
Larry Richardson, CEO of ReEnergy, noted that "this exciting, new relationship with the Rumford mill is consistent with our business strategy of owning and managing solid fuel renewable energy facilities. We look forward to providing mission-critical, cost effective electricity and thermal energy to the Rumford mill." Tom Beck, ReEnergy's chief commercial officer added that "this partnership promises to support Maine's vital paper industry, and ReEnergy looks forward to providing green energy to both the Rumford mill and the New England region."
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