Akeida Capital Management’s Blue Lake Power Biomass Facility in California has been certified for commercial operation by Pacific Gas & Electric after the successful completion of its trial period.
Akeida provided a senior secured credit facility to complete the plant’s refurbishment, commission the plant, provide working capital and build fuel inventory.
The project is now in commercial operation and generating revenue for its investors.
Akeida stepped in as the senior lender to the project in September 2009 and provided a convertible credit facility in order to continue the refurbishment of the plant after the plant’s original construction finance partner faced economic difficulties and had to withdraw from the financing.
A portion of the plant’s financing was a USD2m grant from the US Forestry Department which was part of the American Reinvestment and Recovery Act stimulus package.
“The Blue Lake Power deal represents Akeida’s commitment to private equity activities focused on late stage lending to biomass plants and other renewable energy projects that have relevant approvals and contracts in place. Longer-term, our goal is to continue to source and pursue deals with partners and investors interested in a suite of alternative investment products in the renewable energy space,” says Akeida principal Harvey Abrahams. “The need for accessible, creative financing solutions and specialised market expertise provides ample attractive investing opportunities.”
