Sludge Watch ==> Minergy - sold to Thermagen - cofires sludge to produce steam for paper mills

[maureen.reilly at sympatico.ca]

http://www.postcrescent.com/apps/pbcs.dll/article?AID=/20060616/APC0101/60616028


Thermagen Power Group: www.thermagenpower.com


About Minergy

Minergy Neenah uses coal to burn industrial paper sludge at a high 
temperature to produce steam for nearby paper mills and glass aggregate for 
the construction industry. It also uses steam to generate electricity for 
sale to Alliant Energy Corp. of Madison.


Posted June 16, 2006

Chicago company plans to buy Minergy

By Duke Behnke
Post-Crescent staff writer

NEENAH - Minergy Corp. has signed a letter of intent to sell Minergy Neenah 
to Thermagen Power Group, a privately held energy company based in Chicago.


Terry Carroll, general manager of Minergy Neenah, said today that 
representatives of the two companies are negotiating the terms of the sale, 
which they hope to finalize by June 30.

Thermagen plans to continue to operate the plant, which burns paper sludge 
to produce steam for nearby paper mills. Thermagen also plans to install a 
new multimillion-dollar turbine generator that will convert more of 
Minergy’s steam to electricity.

That move is necessary because Minergy will lose its largest steam customer 
when the Glatfelter paper mill closes June 30.

"It’s fantastic news that we have a quality buyer who wants to invest in the 
plant," Carroll said.

Thomas Shepard, managing partner for Thermagen, said Thermagen specializes 
in acquiring plants that have issues and solving those issues. In Minergy’s 
case, the issue is the loss of its primary steam customer.

"We don’t buy plants to shut them down," Shepard said. "We look for 
long-term operating solutions."

Shepard said Thermagen plans to retain Minergy’s 30 employees and honor all 
of Minergy’s contracts. That includes accepting paper sludge from SCA Tissue 
in Menasha and Neenah Paper Inc. and providing steam to Neenah Paper and 
Kimberly-Clark Corp.’s X Mill.

Mayor George Scherck said he met with Thermagen officials Thursday.

"I was impressed by their commitment to running a quality facility and by 
their desire to continue to invest in Minergy," Scherck said. "That’s great 
news for Neenah, and it’s also great news for the 30 families who are 
involved in working there."

Wisconsin Energy Corp., Minergy’s parent company, has been trying to sell 
the plant since August to generate money for the construction of its power 
plants in Port Washington and Oak Creek.

The effort was renewed in February when Glatfelter announced the closure of 
its Neenah mill.

Carroll said Thermagen plans to install a turbine generator that can use all 
of the steam Minergy can produce. Until the generator is installed - Carroll 
said that could take a year - Minergy plans to scale back its production.

"Otherwise we would have to vent the steam," Carroll said. "That is too 
expensive."

Minergy has a contract to haul excess paper sludge to the Winnebago County 
landfill.

Duke Behnke can be reached at 920-729-6622, ext. 32, or by e-mail at 
dbehnke at postcrescent.com.