RUMFORD — The cogeneration energy facility at NewPage Corp. in Rumford has been sold to a New York integrated biomass waste-fuel company.
The selling price is $61 million.
The effect on the local mill is not yet known by Local 900 union President Matt Bean.
“We need more information on that. It's in the very early stages,” he said Thursday afternoon.
Local mill spokeswoman Janet Hall said the transaction has been in the works for a while.
“No job losses are anticipated,” she said.
She declined to provide further details.
The announcement was made in a news release from the NewPage home office in Miamisburg, Ohio. Phone calls to the Ohio office for comment were not returned.
According to the release, ReEnergy Holdings LLC, of Latham, N.Y., is buying the cogeneration energy assets in the Rumford mill.
ReEnergy Holdings LLC is a recently formed company by multibillion dollar corporation, Riverstone Holdings LLC, which has offices in New York, London and Houston.
According to the release, the transaction is expected to provide a longtime symbiotic relationship between the Rumford mill and ReEnergy.
“ReEnergy will operate the acquired assets to provide energy to the Rumford mill in the form of electricity and thermal energy. In turn, Rumford's pulp and papermaking process will supply ReEnergy with sustainable biomass fuel needed to operate the cogeneration assets,” according to the release.
The release and ReEnergy's website said the company focuses on renewable energy. It currently owns a 31 megawatt tire-to-energy facility in Sterling, Conn., and two construction and demolition waste and waste wood facilities in Epping and Salem, N.H.
Riverstone was formed in 2000 and is an energy and power private equity firm with investments in gas, oil and renewable energy.
The deal is subject to regulatory approvals and is expected to close sometime in mid-2011, according to the release.
NewPage owns plants in Maine, Kentucky, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia.