BioResource Management Selected to Manage Biomass Supply for 100 MW Florida Facility

BioResource Management, Inc. (BRM) announced today that it has been selected by Gainesville Renewable Energy Center, LLC (GREC) to manage their biomass supply requirements for GREC’s 100 MW generating facility located in Gainesville, Florida. The eight-year agreement includes responsibilities in biomass negotiating and contracting, delivery management, and ensuring compliance with forestry sustainability standards.  The GREC plant began site construction in early 2011, successfully completed financing in June 2011 and is scheduled to be operational by late 2013. “We are excited to be part of one of the largest biomass power projects in the U.S., a successful development effort
that will bring economic development to the area as well as increase renewable
energy and stimulate the health and management of the surrounding forests,”
said Richard Schroeder, President of BRM. “We are proud to have been selected
and look forward to the long-term relationship”. BRM was selected over national
and international firms to perform the services, and will oversee the delivery
of over 1,000,000 tons of qualified biomass to the facility each year through
2019.

The financing for construction of the GREC facility is the
result of over eight years of study by the Gainesville Regional Utilities to
expand their generating capacity.  The
first studies exploring the wood supply were conducted in 2003, and since then
at least five independent studies have been conducted by national research,
engineering firms, the University of Florida and other state agencies. The
consensus of these studies is that there are sufficient long-term, sustainable
supplies of low-grade or non-merchantable material to adequately supply the
facility for its estimated thirty-year life and beyond. The principals of BRM
were in involved in some of these studies since 2005. In 2009 BRM was
contracted to confirm the available supplies, and develop the delivery
infrastructure required for successful financing of the project.  During the next two years, BRM identified potential suppliers and developed letters of intent or long-term binding
agreements for over 100% of the facility’s requirements. BRM provided information and confirmation to GREC’s owners, lenders, stakeholders such as regulatory authorities, and local officials that the facility would have no adverse effects on the forest environment and would even improve the forest health. In addition, by removing the forest understory the danger of wildfires are prevented and open burning of landclearing debris is reduced.