New owner takes over Hampden biomass plant

Mon, 08/15/2022 - 12:15pm

In March 2016, the Municipal Review Committee ended its 25-year relationship with Penobscot Energy Recovery (PERC). MRC, a non-profit conglomeration of Maine municipalities, is charged with finding solid waste disposal options for its membership. Six years ago, MRC had 187 members and entered into an agreement with Fiberight, LLC., a Maryland-based clean energy technology business. Fiberight built an $85 million plant in Hampden. with state-of-the-art technology in creating a new solid waste management system.

Boothbay Region Refuse Disposal District is an member of MRC, which now totals 115. Over the past six years, members have been frustrated with the new plant’s managerial and financial problems resulting in the plant being closed far more than operational. On Aug. 8, a potential new owner emerged to run the troubled Hampden biomass plant.

During the Aug. 11 BRRDD meeting, Station Manager Steve Lewis announced MRC is becoming the plant’s new owners. “I don’t have a lot of details, but it looks like it may reopen this spring,” he said. 

In the original agreement, the MRC owned the driveway and land where the plant is, and Fiberight owned the building. Now MRC will own the entire operation. Lewis reported MRC is negotiating with Revere Capital Advisors, LLC. to finance the plant’s operation.

MRC Executive Director Michael Carrow shared a message at mrcmaine.org regarding the purchase. He wrote: “Under the draft terms, Revere and its affiliates would provide the capital funding needed to restart and operate the facility. Revere and affiliates would also assume the position of majority partner in Municipal Waste Solutions, the LLC  formed by MRC to purchase and own the Facility.”

In its address to the board of directors at last week's meeting, Revere identified CS Solutions as the intended contract vendor for engineering services in the restart and operation of the facility. This has stirred some questions. According to Carrow’s message, MRC's partnership will be with Revere Capital Advisors, LLC and not with any other entity. MRC is aware of CS Solutions' ties to a company with previous involvement in Maine.

However, the structure planned for the Hampden facility is wholly different, Carrow’s message states. CS Solutions will strictly be a vendor to Revere and will have no role in the facility’s ownership, financing, or governance. According to the message, Revere’s proposal does not rely on any state or local tax incentives, loan guarantees, credit enhancements, or similar financial support.

In other action, Steve Lewis is still calculating the past fiscal year’s financial figures. “I’m not finished, but I can tell they’re better than last year,” he said. “This year, we weren’t scrambling asking towns to send in their checks. So it’s definitely better.”

Steve Lewis also expects delivery of new trucks for the transfer station and Giles Rubbish. A new Peterbilt roll-off truck is expected later this month. The district is buying it for $201,000-plus, according to Steve Lewis. The district has secured a loan with a 3.56% interest rate for five years. Steve Lewis reported yearly payments would be $44,437.

Trustees decided against a $75,000 trade-in for their current roll-off truck. Boothbay Harbor trustee Jody Lewis believed keeping the truck would serve the district best in the long run. “I highly recommend we keep it. You can’t find used trucks now, and we’d be absolutely foolish not to keep it,” he said.  

The district will now have two used trucks and one new. “We will rotate them because you just can’t sit a truck for a long time and expect it to run,” Lewis said. Giles Rubbish is also receiving a new Peterbilt packer truck in September. 

Trustees also elected a new slate of officers. Gary Crosby remains chairman. Jodi Lewis succeeds Chuck Cunningham as vice-chairman. Curt Crosby is personnel director. Rob Hopkins remains treasurer and Cunningham assistant treasurer. J.D. Warren is the clerk. 

Trustees meet next at 5 p.m. Thursday, Sept. 8 in the business office.