Woody Biomass Power Plant For Ione, California

The Sacramento Municipal Utility District (SMUD) has approved a 20-year contract with Buena Vista Biomass Power LLC, a renewable energy woody biomass power plant majority-owned by Minneapolis-based renewable energy company, Otoka Energy. The renewable energy project located near Ione, California, will provide 16 megawatts of base-load electric generating capacity to SMUD and assist the State with reducing emissions from uncontrolled forestry and agriculture fires, promoting efficient watershed and defensible communities, as well as furthering the goal to increase renewable energy resources.

The Buena Vista Biomass Power facility will provide enough base-load renewable energy for approximately 14,000 homes and compliment SMUD’s 33 percent renewable energy supply portfolio goal by 2020. Under the terms of the agreement, SMUD will receive all the energy, capacity attributes, and environmental attributes from the Project, upon commercial operation in the third quarter of 2010.

“As a member of the local community, Buena Vista Biomass Power is pleased to enter into a long-term-agreement with SMUD to deliver responsible, sustainable and renewable base-load energy to SMUD’s customers,” said Mark Thompson, Managing Partner for Buena Vista Biomass Power LLC. “The substantial commitment to renewable energy from sound generation resources is evident in the diligence and focus instilled throughout the SMUD organization. We appreciate the extensive efforts demonstrated by the SMUD team to consummate this agreement.”

Buena Vista Biomass Power is pleased to also announce that the United States Department of Agriculture – Forest Service, has awarded a Wildland Fire Management grant in excess of $2.4 million to the Buena Vista Biomass Power facility. This grant, critical to the Project’s restoration efforts, is derived from the American Recovery and Reinvestment Act and is specifically targeted toward the development and completion of the project that will result in local job creation and responsible wildland fire risk mitigation.

“Our commitment to the community and this project will be realized in the advancement of defensible communities, wildland fire management, immediate creation of jobs and the production of responsible, sustainable renewable energy. We firmly believe that our project will truly be a benefit to SMUD, its customers and the state, and look forward to our stewardship role,” concluded Thompson.

Buena Vista Biomass Power LLC is a privately held company that is majority-owned by Otoka Energy Corporation. For more information please visit our websites: www.bv-biomass.com and www.otoka.com.

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