Camco, the global developer of greenhouse gas emission reductions and clean energy projects, is pleased to announce the financial close and beginning of construction on the largest dairy biogas project in North America.
The project, which is wholly owned by Camco and operated by the consortium AgPower Group LLC, involves the installation of anaerobic digesters to convert cow manure into enough biogas to fuel 4.5MW of generation capacity. Proven anaerobic digesters of a type already installed in over 50 farms across the US to date will convert cow manure from a US dairy farm based in Idaho into clean electricity.
The project is fully financed for an estimated total project construction cost of less than $25 million, comprising a combination of construction financing and debt financing. The project qualifies for the federal grant programme established by the American Recovery and Reinvestment Act of 2009, under which 30% of eligible construction costs are reimbursed. This financing structure was enabled by the strength of the underlying construction and off-take agreements and the track record of Camco and its development partners.
A 20-year power purchase agreement is in place and the facility also has multi-year contracts for the Sale of sterilized fibre. The renewable energy certificates and emission credits qualify under California’s new renewable energy and greenhouse gas regulations.
Civil and foundation work is well underway and completion of construction is anticipated in the first half of 2012.
Yariv Cohen, Camco President said:
“Closing financing and commencing construction on the largest dairy biogas project in the US is a major achievement for the Camco North America team. The USDA target has outlined potential to roll out anaerobic digesters across 8,000 farms with potential generation of over 1,500 MW in the US and we are in a pole position to lead this effort. Camco is rapidly accelerating its activities globally in 2011 and this achievement, together with recent achievements in China, demonstrates the company’s regionally led strategy and the strength of our teams on the ground.”