Fibrowatt is an independent power producer (IPP) and therefore is largely reliant on securing a long-term power purchase agreement (PPA) with utilities before major development activities can take place. Unlike these regulated utilities, which can incrementally seek ratepayer relief for increased costs, an IPP must rely on the financial strength and contractual protection of a PPA. A PPA is basically a central component for a financially viable project like Fibrowatt’s.

As was indicated in a Georgia post on July 19th, one of the key factors for the development of a Fibrowatt project in Georgia is a PPA. Based on initial review and continued discussions with the utilities, it was felt that there was enough utility interest in Georgia to increase project development activities. To meet a schedule that could provide the best negotiated power purchase price for the utilities, Fibrowatt completed initial siting evaluation in northeast Georgia so that a site could be selected with little delay if the PPA negotiations were to progress further.

While significant progress was made in these PPA talks, Fibrowatt was recently notified that there is not quite enough interest at this time to proceed with further PPA negotiations.

While Fibrowatt continues to believe that Georgia would benefit greatly from the development of a Fibrowatt project, with no PPA likely in the short-term, Fibrowatt has decided to suspend efforts to develop a plant in Georgia.

Fibrowatt notified the interested host counties that it had discontinued site selection activities in Georgia and that we hope that they are successful with other economic development projects that they are pursuing.