Biomass

Hunton Andrews Kurth LLP lawyers regularly represent investors, lenders, developers, operators and other industry participants in connection with open-loop and closed-loop biomass projects throughout the United States and abroad. We advise clients on the construction, financing and operation of biomass projects, and the sale of the power they generate and bring a full complement of experience in tax, regulatory, project development, commercial arrangements, government affairs, and financing. We have represented clients in connection with the financing, acquisition and development of stand-alone biomass-fueled power plants, powerhouses located at pulp and paper mills, and conversion of coal-fired plants to biomass.

We have been active in all facets of biomass facility development, including advice pertaining to Section 45 tax credits for the production of electricity from open-loop and closed-loop biomass projects and Section 1603 Treasury grants in lieu of tax credits. In 2006, our tax lawyers worked with the Treasury Department and the Internal Revenue Service and played a key role in connection with the issuance of Notice 2006-88 which provides guidance on various issues regarding the application of the Section 45 tax credit to open-loop biomass projects.

Selected Experience

• Acted as counsel to a financial institution in connection with the development and financing of biomass facility in Wisconsin.
• Acted as counsel to DTE Energy Services in connection with:
  • the acquisition of the coal-fired Mt. Poso Cogeneration Company power plant, including the conversion of the plant into a biomass-fired power plant; and
  • the acquisition of the coal-fired Port of Stockton Power Plant, including the conversion of the plant into a biomass-fired power plant.
• Acted as counsel to the International Finance Corporation in connection with the development of an open-loop biomass facilities.
• Acted as counsel to Green Power Solutions of Georgia, LLC in connection with a construction financing of a 28 MW biomass facility located in Georgia.
• Acted as counsel to a client in obtaining IRS Notice 2007-37 providing guidance on the tax credit for production of renewable diesel fuel. This guidance required coordination of technical issues between Treasury, DOE and NREL regarding production of renewable diesel fuel from biomass.
• Acted as counsel to a client in obtaining IRS Notice 2006-88 providing guidance on the section 45 tax credit for production of electricity from open-loop biomass.
• Acted as counsel to an equity investor in connection with the conversion of a coal-fired generation project to a 56 MW biomass facility located in Florida.
• Acted as counsel to an independent power producer in connection with the purchase of a 17.5 MW biomass facility located in New Hampshire.
• Acted as counsel to a private equity fund in connection with a joint venture with a national developer to purchase equity interests in a 40 MW biomass facility in Michigan and in the subsequent restructuring and refinancing of the project and sale.