Energy Giant Tenaska Adds Biodiesel to Portfolio

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Researched by Industrial Info Resources (Sugar Land, Texas)--Tenaska Capital Management LLC (Omaha, Nebraska) has added biofuel to its energy production portfolio with the acquisition of the Clinton County Bio Energy biodiesel plant, located in Clinton, Iowa.

Tenaska's strategy is to acquire long-life infrastructure assets in the North American power generation and midstream sectors.

The biodiesel plant, which began production in 2006, has a colorful history. The facility was built by Clinton County Bio Energy, utilizing process technology developed by Nova Biosource Fuels Incorporated (Houston, Texas). In 2007, Nova acquired the 10 million-gallon-per-year plant from Clinton County Bio.

Nova filed for bankruptcy in 2009 and mothballed the plant due to unfavorable margin conditions in the biofuel market. In 2010, leading biodiesel producer Renewable Energy Group (NASDAQ:REGI) (REG) (Ames, Iowa) purchased all of Nova's assets, including the Clinton plant. A group of local investors resumed production under Clinton County Bio Energy.

A fire broke out at the plant in 2013, causing some $70,000 in damages, but repairs were made and the plant resumed production. Tenaska will employ the same staff and does not expect to change the name of the facility.

Tenaska operates 16 power generation plants. They are located mainly in the Midwest, but the company also has assets from California to Texas.

Tenaska has more than $5.7 billion in planned capital and maintenance spending. One project, estimated at $1.1 billion, is a 950-megawatt (MW), combined-cycle power plant planned for Lebanon, Pennsylvania. An $800 million, 800-MW plant project in Cameron, Texas, is scheduled to begin construction in late 2015.

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