-LLEG just got their required air permit: LLEG's Air Permit decision FINAL DETERMINATION To Grant a Prevention of Significant Deterioration/Non-Attainment New Source Review Permit For Laidlaw Berlin BioPower, LLC to construct 1,013 MMBtu/hr Biomass Boiler, 323 hp Diesel Fire pump and 4-cell Cooling Tower located at 57 Hutchins Street Berlin, NH 03570
According to the State of New Hampshire's Renewable Portfolio Standard, Laidlaw's Berlin project will produce (65MW)*(365 days/year)*(24 hours/day) = 569,400 MWh of electricity per year. 1 MWh = 1 Renewable Energy Certificate.
-->Therefore, by NH's standard, Laidlaw's Berlin Project can sell 569,400 Renewable Energy Certificates per year @ $60.92 per Certificate. Laidlaw will generate $34,687,848 USD per year in revenue just from RECs alone.
-->The 65MWh of power will also be sold per a Power Purchase Agreement. PSNH (NH's utility provider) sells power at $.151115 per kWh. Assuming that PSNH buys Laidlaw's power at half what they charge consumers ($.0755575 per kWh), Laidlaw will generate $43,022, 441 USD per year in revenue from sale of electric power.
-->That brings Laidlaw's total estimated revenue to $77,710,288 USD per year. The power purchase term sheet lists the proposed Power Purchase Agreement as a 20 year contract (http://www.biomassmagazine.com/article.jsp?article_id=2088 & www.psnhnews.com). This contract (under current REC and electric rates) would supply Laidlaw with $1,554,205,760 USD in revenue for the 20 year life of the contract.
-->LLEG owns 37.5% of the Berlin project, giving them a total of $582,827,160 of revenue over the life of the contract.
--> It has been discussed that LLEG sold their equity position in Laidlaw Berlin for cash. This could make for a nice balance sheet at the end of the year and allow LLEG to grow!
LLEG is a solid company setting themselves up for success. Laidlaw Energy Group will receive their notification of permit decision on September 23, 2010 with construction slated to begin shortly after.