Eastman Kodak and Recycled Energy Development (RED) announced Sept. 3 the closing of a deal to transition Kodak’s utility infrastructure at Eastman Business Park (EBP) in New York state, one of the nation’s largest industrial complexes, to RED.
The utility business 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 CEO Sean Casten.
An acquisition agreement between RED-Rochester and Kodak was signed in December 2012. The parties have been working since then to finalize customer contracts, secure various operating permits and coordinate with Kodak’s Chapter 11 bankruptcy restructuring process.
Empire State Development (ESD), the state’s economic development agency, provided $7.1m in state assistance, including a loan of up to $3.5m and a grant of $3.6m, 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.
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 MW and also can deliver a similar amount of thermal energy to EBP in the form of steam and chilled water.
Said 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, which develops, owns, and operates power projects that harness waste energy and dramatically reduce greenhouse gas emissions and power costs. 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.
Kodak, once reliant on now outmoded film stock production, has transformed itself 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.