Sappi North America Inc., a producer and supplier of paper, packaging products and pulp, announced it will sell its hydroelectric assets on the Presumpscot River in Maine to Dichotomy Power LLC, pending satisfactory completion of regulatory and other approvals.
The move will allow Sappi to focus on its core competencies and is consistent with Sappi’s recent restructuring of the Westbrook site, according to a press release.
“We are happy to have found a strategic buyer in Dichotomy Power, a company with a wealth of expertise in this area, so that Sappi can continue to focus on its core competencies,” said Mike Haws, president and chief executive officer, Sappi North America. “Today’s announcement allows us to redeploy resources to further develop our growing businesses.”
The hydroelectric projects involved in the transaction were not named.
“Dichotomy Power is pleased to have reached an agreement with Sappi North America, Inc. to acquire their Presumpscot River hydroelectric facilities,” said Ian Clark, CEO of Dichotomy Power. “We are proud to carry on a history of successful traditions that started in 1878 with mechanical waterpower. Dichotomy looks forward to investing in the facilities to increase renewable energy production while honoring the commitments made to the agencies, communities, regulators and stakeholders who helped craft the new licenses.”
The deal is expected to close by the end of the calendar year subject to regulatory and other approvals.
Dichotomy Power is a New York-based renewable-energy company engaged in acquiring, renovating as needed, and operating hydroelectric assets in the U.S., principally in the Northeast. Founded in 2019, Dichotomy creates value for stakeholders by working alongside regulators and local communities to enhance the fundamental value embedded in each operated renewable energy facility while preserving the environmental and social contributions these assets carry.
According to its website, Dichotomy owns and operates eight hydroelectric facilities.