Bank of Tokyo Leads $500 Million Funding for Biomass Power Plant

The Bank of Tokyo-Mitsubishi UFJ Ltd. led a $500 million financing round for a 100-megawatt biomass power plant under construction in Gainesville, Florida.

Bank of Tokyo was joined by French banks Natixis, Credit Agricole SA and Societe Generale SA, and Dutch banks Rabobank Nederland and ING Groep NV to provide non-recourse debt financing for the Gainesville Renewable Energy Center, the project’s Boston-based developer American Renewables LLC said yesterday in a statement.

Gainesville Regional Utilities will buy power from the project, which will be fueled by wood waste from logging and construction, through a 30-year contract. Construction began in March and is expected to be completed in late 2013. The plant will generate enough power for 70,000 homes.

American Renewables is developing the similar 100-megawatt Nacogdoches Power project near Sacul, Texas. The company is a partnership between Energy Management Inc., BayCorp Holdings Ltd., Tyr Energy Inc.

The Granite Falls, Minnesota-based construction company Fagen Inc., is building both plants, and some of its principles are proving equity financing, along with the developer, for the Gainesville plant.