Eastman Kodak Company and Recycled Energy Development Finalize Deal to Transition Eastman Business P
Eastman Kodak Company and Recycled Energy Development Finalize Deal to Transition Eastman Business Park Utilities
Leading energy efficiency firm to acquire and upgrade the power plant, cutting emissions, retaining employees, and enhancing the Park's revitalization
ROCHESTER, N.Y.--(BUSINESS WIRE)-- Eastman Kodak Company and Recycled Energy Development (RED) today announced the closing of their deal to transition Kodak's utility infrastructure at Eastman Business Park (EBP), one of the nation's largest industrial complexes, to RED. The utility business today provides electricity, steam, chilled water, compressed air, industrial water, sewer services, nitrogen, natural gas and potable water to the Park's more than 40 owners and tenants. RED-Rochester plans to make significant investments over the next five years in a variety of energy efficiency projects and to convert the plant from coal to natural gas.
"RED-Rochester looks forward to supporting the Park's revitalization and to working with a great staff that has operated the facility for many years," said RED Chief Executive Officer Sean Casten.
An acquisition agreement between RED-Rochester and Kodak was signed on December 21, 2012, and the parties have been working through 2013 to finalize customer contracts, secure various operating permits and coordinate with Kodak's Chapter 11 restructuring process. Casten particularly thanked New York officials for their support and environmental and regulatory permits, saying, "It's been a pleasure working with state leaders committed to bringing economic development and jobs to the region."
Empire State Development (ESD), the state's economic development agency, provided $7.1 million in state assistance, including a loan of up to $3.5 million and a grant of $3. 6 million, to facilitate the project and will be used for a portion of the cost of RED's acquisition of all the Kodak utilities and some near term investments to upgrade the utility systems.
"Kodak is delighted that RED-Rochester is investing in infrastructure, helping ensure the Park is a desirable place to do business," said Michael Alt, Director of Eastman Business Park. "Kodak will continue to work closely with RED-Rochester to make EBP one of the most competitively priced and attractive industrial and technology parks in the nation for both our current tenants and for those who choose to make EBP their home in the future."
EBP utilities include electricity, steam, water, refrigeration, compressed air, and nitrogen, as well as wastewater treatment. The power plant has an electric generating capacity of 125 megawatts and also can deliver a similar amount of thermal energy to EBP in the form of steam and chilled water.
According to Casten, "Eastman Business Park will serve as a model for how industrial facilities across the country can meet new environmental standards, particularly the U.S. Environmental Protection Agency's Maximum Achievable Control Technology standard for utility boilers (Boiler MACT)."
RED-Rochester is a subsidiary of Recycled Energy Development (www.recycled-energy.com), which develops, owns, and operates power projects that harness waste energy and dramatically reduce greenhouse gas emissions and power costs. With more than 30 years' experience undertaking environmentally responsible energy development projects, RED's team works closely with industrial companies to optimize energy efficiency and maximize profits. Its leaders have designed, owned or operated more than 200 energy recycling projects like the ones at Eastman Business Park. RED is supported by Tulum Trust, a private equity firm that invests in low-carbon energy businesses.
RED-Rochester will soon invest millions to increase the Park's energy efficiency and utilities productivity in order to help attract new businesses and jobs to the region while ensuring compliance with Boiler MACT and other pending environmental regulations.
Kodak has transformed into a technology company focused on imaging for business. Kodak serves customers with disruptive technologies and breakthrough solutions for the product goods packaging, graphic communications and functional printing industries. The company also offers leading products and services in Entertainment Imaging and Commercial Films. For additional information on Kodak, visit kodak.com.
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