The complex network of industrial utilities inside Eastman Business Park is getting a new owner, again. And the buyers will pay to retrofit the park's power plant with high-efficiency natural gas boilers, replacing its coal-fired ones.
Recycled Energy Development reached a deal to sell its portfolio of site-specific power and utility systems – which includes the Eastman Business Park facilities – to Ironclad Energy Partners. The sale needs the State Public Service Commission's approval.
When Recycled Energy Development bought the business park's utilities system in 2013, it was a big deal. Kodak had begun opening the park up to outside tenants, and the utilities systems are attractive. Inexpensive power and industrial water treatment capabilities are among the draws.
But the systems – the power plant especially -- needed upgrades and Kodak was trudging through bankruptcy, so it wasn't in a position to make the investments. RED didn't just buy the utilities; it spent $30 million updating them.
The company needed additional funding to carry out the power plant conversion, however. Ironclad was working with RED on that funding, and the purchase grew out of those talks. The new owner has promised to put up the financing for the upgrades, which carry an estimated $75 million cost, according to a filing with the PSC.