Laidlaw Energy has entered into a definitive agreement to acquire a 14MW biomass power plant located in the US state of California.
The company will buy the facility in Susanville from Renegy and Nature Energies, and both companies will become equity holders in Laidlaw.
Laidlaw plans to refurbish the Susanville plant, and the refurbishment process is expected to cost approximately $20m.
Once the facility is operational, it is anticipated to generate revenues of approximately $8m – $9m per annum, the company said.
Laidlaw said it is currently negotiating a 20-year to 30-year power purchase agreement.
Laidlaw is engaged in the development of power plants that generate electricity from renewable resources.