Cdn. biotech company buys Michigan power producer
By Canadian Biomass
August 28, 2014, Saskatoon, Sask. – Biotech company Prairie Plant Systems Inc. (PPS) announced it has purchased Traxys Power Group Inc. (TPG). The company will be renamed P.M. Power Group Inc. as part of the acquisition.
By Canadian Biomass
August 28, 2014, Saskatoon, Sask. – Biotech company Prairie Plant Systems
Inc. (PPS) announced it has purchased Traxys Power Group Inc. (TPG). The
company will be renamed P.M. Power Group Inc. as part of the acquisition.
The assets involved in the acquisition, which are located in White Pine,
White Pine Electric Power LLC — a 40 megawatt
natural gas generating power plant
White Pine Copper Refinery Inc. — offering refining
capacity to produce 85,000 short tonnes per year of anode quality copper
Upper Peninsula Power Marketing LLC — an electrical
supply broker company that buys and sells onto the power grid
"With Michigan's energy policy (Public Act 295 of 2008) set to
expire in 2015 just as new regulations from the United States Environmental
Protection Agency (USEPA) will be requiring states to cut carbon pollution from
existing power plants, we wanted to ensure that the highly specialized work we
do in creating plant-based pharmaceuticals would not be in jeopardy as a result
of power outages," said Brent Zettl, President and CEO of Prairie Plant
Systems. "This strategic acquisition to maintain our own supply of
consistent power will ensure that there will be no delay in the development of
the drugs in our pipeline."
This unique asset acquisition by Prairie Plant Systems will position
this biotech company as the first to wholly control their own source of energy,
primarily to be used in the growth chambers for the U.S. subsidiary, SubTerra
LLC, located in White Pine, Michigan. Using biosecure underground growth
chambers to cultivate and process biopharmaceutical plant species allows for
the efficient use of research and development funds by reducing the costs
associated with regulatory approvals for genetic containment in the early
stages of biopharmaceutical development.
In addition, the SubTerra advantage includes the highest level of
quality control (GMP, GAP, GLP), Level 2 containment meaning there is no risk
of unintended generic release, accelerated growth and improved crop production.
Steve Walsh, President of
TPG Power Holdings LLC, the former owner of TPG, said, "The Traxys Group
has been at the White Pine site for over 10 years and recently completed the
conversion of the White Pine Power Station from coal fired to natural gas fired
which makes it a cleaner, more economical power station. This permanent conversion
was done in accordance with EPA guidelines. As Traxys looks to focus its
time and resources on its core business of metals and minerals trading,
divestiture of the power group was seen as a logical strategic move."