CHARBONE HYDROGEN closes the acquisition of the Shawano Wisconsin Hydropower Plant
CHARBONE HYDROGEN CORPORATION has closed the previously announced transaction and executed the Purchase and Sale Agreement (the PSA), effective as of December 1st, 2022, between its wholly-owned subsidiary, Charbone Corporation USA, and NORTHWOODS HYDROPOWER INC., for the acquisition of all of the general partner and limited partner interests of Wolf River Hydro Limited Partnership, the owner of the 700 kW operating hydropower plant in Shawano, Wisconsin.
The base purchase price for the acquisition is $700,000 USD. As a result of the Closing, Charbone now has the benefits of the revenues, since December 1, 2022, generated by Wolf River.
Charbone and Northwoods will continue to negotiate purchase and sale agreements for the Tower Kleber Limited Partnership and the Black River Limited Partnership (collectively, the “Limited Partnerships”), with the intention to conclude the acquisition of the Limited Partnerships on or before February 28, 2022, as previously announced. The Limited Partnerships have the capacity to produce 2,760 kW of hydropower. The operating hydropower plants owned by the Limited Partnerships are each located in the Onaway region of Michigan.
The Northwoods management and operation teams have agreed to continue to perform their duties under Charbone’s ownership and will assist Charbone’s engineering team in implementing optimization, modernization, and automation projects at each of the plants. Charbone aims to be one of the first green hydrogen producers in the Midwestern United States.
“The closing of this transaction is a big step for Charbone as it creates long-term value and recurrent revenues through the existing power purchase agreement with the actual off taker of the energy at the Shawano facility,” said Dave B. Gagnon, Chairman and CEO of Charbone. “Within the next few months, Charbone will have its hydro engineering partners review the facility and proposed projects to optimize or modernize and automate the plant so we can increase the energy production and increase revenues or start looking at a regional production hub of green hydrogen in Wisconsin.”