A portion of the capital has been used by the alternative energy developer to acquire the interest, while the remaining funds will be used as working capital for development of the new project.
The Blue Mountain Biogas project with a capacity of 3.2MW of renewable energy captures methane from swine waste at Smithfield Foods’ livestock production subsidiary Murphy-Brown’s Circle 4 Farm.
The methane released is cleaned, conditioned and burned to generate electricity, which is then sold on the grid under a long-term, fixed rate off-take agreement to a municipality in Utah.
In order to accelerate development of other renewable and alternative energy projects, Geopower intends to offer up to $8m of company equity in early 2014.
Geopower managing director and CEO Ben Mead said the project will will pave the way for the company to develop other energy projects.
"The Blue Mountain Biogas Project is one of the world’s largest producers of electrical energy from swine waste, located on the largest pig farm in the western United States," Mead added.
