CMFA Issues Tax-Exempt Financing for Escondido Bioenergy Facility
The Escondido Bioenergy Facility will be a $8.1M fully financed 1.2 MW biogas cogeneration project located onsite at the City of Escondido’s Hale Avenue Resource Recovery Facility (“HARRF”) 1521 South Hale Avenue in Escondido, CA 92029 (the “Site”).
The loan will be used to finance the acquisition, construction, improvement and equipping of a certain biogas cogeneration project, consisting of two pre-packaged Combined Heat and Power systems and the required gas conditioning and emissions control equipment and certain ancillary and related equipment and facilities, to be located at the City of Escondido’s Hale Avenue Resource Recovery Facility (“HARRF”), within the City of Escondido, and to be owned and operated by the Borrower.
HARRF is an activated sludge, secondary treatment wastewater treatment plant that consists of biological processes of which digester gas is a by-product. Digester gas is composed of about 40% carbon dioxide and 60% methane. The Facility consists of two pre-packaged Combined Heat and Power (“CHP”) systems, one rated at 800 kW and the other rated at 400 kW, along with required gas conditioning and emissions control equipment. Both of the CHP systems will be integrated into the infrastructure of the existing Facility, and will produce power for delivery to HARRF. The Project will utilize HARRF’s digester gas as fuel (“Biogas”) and generate both electricity and heat to offset the Facilities electrical power and natural gas demand from the local utility, San Diego Gas and Electric (“SDG&E”).
The Facility will be located on HARRF property under a Site License Agreement which is included as Exhibit F of the PPA. As consideration for use of the lands, Anaergia will pay $10.00 to the City of Escondido prior to Commercial Operation, and will be responsible for property taxes on capital improvements. The main components of the Project will consist of a Gas Conditioning System (“GCS”), a 400 kW CHP engine/generator package, and an 800 kW engine/generator package.