Capstone Partners, advised Mt Poso Cogeneration Company L.P. on a $40 million convertible tax equity investment with DTE Energy Services to fund the conversion of a 49.5 MW coal-fired power plant to burn biomass located near Bakersfield, California.
C.J. Hummel, a Managing Director on Capstone’s Energy team who led the transaction, noted “Converting the Mt Poso power plant from coal to biomass created substantial long-term value, but monetizing tax benefits in today’s capital environment is challenging. This transaction yielded an attractive valuation for departing shareholders and put the company on firm financial footing.”
