Eastman Kodak Co. this morning announced a deal with an Illinois-based energy company that plans to buy, upgrade and operate the utility infrastructure of Eastman Business Park.
Recycled Energy Development aims to convert the industrial park’s coal-fired power plant to natural gas, the company’s CEO said.
Financial terms of the agreement include some $10 million total in cash paid to Kodak for utility assets.
RED CEO Sean Casten said his firm is prepared to make the needed investment to meet new environmental standards such as the U.S. Environmental Agency’s Maximum Achievable Control Technology standard for utility boilers.
“Depending on final compliance and conversion plans, RED plans to invest $40 million to $80 million to convert the coal-fired power plant to natural gas,” said Casten in a prepared statement. “This will increase the cogeneration system’s efficiency, allowing us to continue to supply reliable and economical utilities services to the 37 tenants at Eastman Business Park, along with Kodak.”
The existing power plant generates steam, electricity and chilled water. It has an electric generating capacity of 125 megawatts and can produce a similar amount of thermal energy in the form of steam and chilled water, officials said.
“RED will work closely with Kodak and other major tenants of Eastman Business Park to offer competitively priced, reliable and sustainable services, to optimize energy efficiency on site, and to meet ongoing regulatory obligations,” said Michael Alt, director of Eastman Business Park.
The Kodak-RED agreement requires Bankruptcy Court approval. In addition it requires regulatory approvals and permitting, including from the state Public Service Commission.
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