Renegy Holdings, Inc, headquartered in Tempe, Arizona, is a renewable energy company focused on acquiring, developing, and operating a portfolio of biomass-to-electricity power generation facilities. As a NASDAQ traded company, they also engage in the development, construction, and operation of new biomass facilities.
Their corporate goal is to grow their renewable energy assets to become the leading independent power producer of biomass electricity in North America. Renegy is using wood waste as their primary fuel source. They sell the electrical, and sometimes the steam, output from their facilities to local utilities and industrial customers.
The company began commercial operations of their Snowflake White Mountain Power project on June 10, 2008. Snowflake is a 24-megawatt biomass plant located near Snowflake, Arizona. This energy facility of Renegy’ Holdings Inc. has two long-term power purchase agreements with Arizona Public Services (APS) and Salt River Project (SRP), Arizona’s two largest electric utilities. The Snowflake plant burns a combination of wood waste and recycled paper sludge to produce enough electricity to power 24,000 homes. The wood waste comes from area forests and local green waste sites while the recycled paper sludge comes from a newsprint mill next to their facility.
Renegy Holdings also operates a fuel aggregation and wood products business. This enterprise collects and transports forest-thinning and wood-waste biomass fuel to their power plants. This operation also sells logs, lumber, shaved wood products, and other high value wood by-products to help defray the costs of fuel for their primary business activities. Last November, Renegy Holdings acquired an idle 13 MW biomass plant in Susanville, California. They estimate this plant may be operational by early 2009.
Renegy Holdings, Inc. originated in 2007 via a merger of Catalytica Energy Systems, Inc. and the renewable energy divisions of NZ Legacy, LLC. Their common stock began trading on the NASDAQ Capital Market on October 1, 2007. In April, they announced the signing of Letters of Intent to acquire an idle 18-megawatt biomass facility in Ione, California and an operating 20-megawatt biomass facility located in Loyalton, California.
Renegy Holdings Inc. has identified other biomass-to-electricity projects totaling in excess of 1,000 megawatts of power output. This is an example of how the company is focusing on growth opportunities in the green marketplace. Their strategy includes acquisitions of existing operating and idle facilities, as well as green projects elsewhere as is feasible in the United States. Renegy hopes to continue taking chips off the old block (wood that is) to further shareholder returns.
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