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.
Rumford Operations mill manager Gerald LeClaire said that 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.
The transaction is subject to regulatory approvals and is expected to close in mid 2011.
