Atlantic Power has closed non-recourse, project-level bank financing for its biomass power project, Piedmont Green Power, located in Barnesville, Georgia.
The terms of the financing include $82m construction and term loan and $51m bridge loan for approximately 95% of the grant to be received from the US Treasury 60 days after the start of commercial operations.
US based Investec and MUFG Power and Utilities are the lead arrangers and joint bookrunners for the financing.
In addition, Atlantic Power will make an equity contribution of approximately $75m for substantially all of the equity interest in the project.
The 53.5MW biomass plant was developed and will be managed by Rollcast Energy, a biomass developer in which Atlantic Power owns a 60% interest.
The project will utilize approximately 500,000 tons of woody biomass annually, including logging residue, mill residue and urban wood waste.
The project is expected to be fully operational by the fourth quarter of 2012.