ROCHESTER, N.Y.--(BUSINESS WIRE)--Eastman Kodak Company and Recycled Energy Development (RED) today announced an agreement under which RED will acquire, upgrade and operate the utility infrastructure of Eastman Business Park (EBP), one of the nation’s largest industrial complexes. This agreement provides stability for EBP and its tenant companies and supports the Park’s revitalization.
“RED thanks New York State for its cooperation and looks forward to continued efforts to capture innovation and growth in Eastman Business Park”
According to RED Chief Executive Officer Sean Casten, the company is also prepared to further invest in order to meet new environmental standards (particularly the U.S. Environmental Agency’s Maximum Achievable Control Technology standard for utility boilers).
“Depending on final compliance and conversion plans, RED plans to invest $40-80 million to convert the coal-fired power plant to natural gas,” said Casten. “This will increase the cogeneration system’s efficiency, allowing us to continue to supply reliable and economical utilities services to the 37 tenants at Eastman Business Park, along with Kodak. These utilities include electricity, steam, water, refrigeration, compressed air, and nitrogen, as well as wastewater treatment.”
The EBP power plant utilizes highly efficient processes to generate steam, electricity, and chilled water. The 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.
“RED’s investment in Eastman Business Park is a critical step in our collective efforts to revitalize the Park; it’s great news for the community, for the tenants of EBP and for Kodak,” said Michael Alt, Director of Eastman Business Park. “RED will work closely with Kodak and other major tenants of Eastman Business Park to offer competitively priced, reliable and sustainable services, to optimize energy efficiency on site, and to meet ongoing regulatory obligations.”
RED is an industrial energy efficiency firm whose core mission is to help companies profitably reduce greenhouse gas emissions. Its leaders have designed, owned or operated more than 200 energy recycling projects like the ones at EBP. RED 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 MACT and other pending environmental regulations.
Alt added that RED will join Kodak in working with officials across all levels of government in what Kodak sees as a multi-tiered plan to grow Eastman Business Park. According to Alt, ensuring the long-term stability of the utilities infrastructure is a crucial step in this effort.
“RED thanks New York State for its cooperation and looks forward to continued efforts to capture innovation and growth in Eastman Business Park,” said Casten. “By supplying low-cost, highly efficient energy, RED believes EBP will serve as a model for how industrial facilities across the country can meet MACT requirements.”
The Kodak-RED agreement is subject to Court approval. It also requires regulatory approvals and permitting, including from the New York State Public Service Commission. The agreement's financial terms include about $10 million total in cash paid to Kodak for utility assets.
Kodak is transforming itself into a B2B company focused on its Commercial Imaging business. Kodak will be centered on commercial, packaging and functional printing solutions and enterprise services, businesses in which it offers customers advanced technologies and products that give them a competitive advantage. The company also offers leading products and services in Entertainment Imaging and Commercial Films. Its Personalized Imaging and Document Imaging businesses are being marketed for sale. For additional information on Kodak, please visit our website at www.kodak.com.
About Recycled Energy Development
Recycled Energy Development (www.recycled-energy.com) 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. RED is supported by Tulum Trust, a private equity firm that invests in low-carbon energy businesses.