Cate Street Capital and Starwood Energy Group have arranged finance for a $275m biomass plant to be built in New Hampshire, US.
A consortium of lenders will provide $200m for the project while equity financing is provided by Cate Street and by Starwood affiliates and debt-financing is secured from Starwood.
Babcock & Wilcox Construction will begin construction at the 75MW project immediately and will complete it by 2013.
A subsidiary of Delta Power Services will provide operations and maintenance services post-completion.
The project will sell energy, capacity and class one renewable energy credits to electric utility Public Service Company of New Hampshire, under a 20-year power purchase agreement.
The project will meet stringent emissions standards and will emit 75% less nitrogen oxide, 90% less mercury and 98% less sulphur dioxide.