Thermogen wood pellet plant loses $20M investment
Thermogen Industries has lost an anticipated $20 million investment for its planned wood pellet plant in Millinocket after CEI’s for-profit investment firm withdrew funding.
The Portland Press Herald reported that CEI Capital Management is withholding $20 million it planned for Thermogen as part of the Maine New Markets Capital Investment tax credit program. The firm is also withholding an additional undisclosed amount of funding under the federal New Markets Tax Credit program.
In a statement to the newspaper, CEI said the decision was made because of an approaching deadline for allocating tax credits and a substantial change in Thermogen’s plans that made its $140 million wood pellet plant project no longer eligible under CEI’s underwriting requirements.
It’s the second time this year Thermogen received a downgrade in funding. Earlier this year, the Finance Authority of Maine reduced its $25 million loan to Thermogen to $16 million.
Alexandra Ritchie, a spokeswoman for Cate Street Capital, the New Hampshire-based investment firm that started Thermogen, told the Press Herald that CEI’s decision “represents another obstacle … [in] finalizing the financing structure,” but added that it’s “in no way a reflection of the project.”
“The Thermogen project continues its development and hopes to reach a financial close on the transaction,” she continued, “and hopes to reach a financial close on the transaction in the near future and be able to begin construction immediately thereafter.”
Most Recent
Most Recent
Comments