MBP to make significant step toward obtaining a 20-year Power Purchase Agreement for the sale of electricity
September 3, 2019 - Mariposa, CA - The Mariposa Biomass Project (MBP), a local non-profit, is pleased to share a press release from technology provider and project partner, Cortus Energy, a green technology company in Sweden.
The Cortus Energy Board of Directors authorized the funds necessary for the MBP to enter the queue for a Power Purchase Agreement (PPA) with PG&E under the BioMAT program created by California law S.B. 1122.
“This important step not only allows the MBP to meet one of the milestones in the project’s $5 million EPIC grant from the California Energy Commission,” said project CEO and Mariposa resident, Jay Johnson, ‘it is also a critical step in assuring potential investors of a guaranteed revenue stream, estimated to be about $4 million a year, for the 20-year duration of the purchase agreement.”
From the Cortus Energy Press release: “During Q1 and Q2 some uncertainties about the future of the program existed as PG&E was, and is, under bankruptcy reorganization (Chapter 11). It has become clear during the second quarter that the program will continue, and PG&E will enter into new PPA contracts.
With a twenty-year subsidized electricity price secured, this means that we can now seriously invite partners and co-investors to the project.
With the Mariposa project, we are opening the doors to the US market where the state of California is a role model for sustainable electricity production….”
The Mariposa Biomass Project is proud that Cortus Energy has chosen our project for their entry into the North American market. Locally, the project will improve fire safety by using sustainably harvested woody biomass removed from around homes and infrastructure, such as roads, power lines and fuel breaks, to create clean green renewable electrical energy. The bioenergy plant will connect to the grid at the PG&E substation located near the Mariposa Industrial Park, the project site. The project will create good paying, non-tourism related jobs operating the plant and cutting and hauling the biomass. “Four million in revenue from only an average of 3 chip trucks a day is not only good business, it is good for the community”, said Johnson.
Source: Mariposa Biomass Project
