David Cohen, president and co-owner of Western Water and Power Production LLC, remains "optimistic" that his plans to build a biomass electricity generating plant near Estancia will succeed.

"With every day going by, the project gets more and more desirable because of the change in attitude around the country towards renewables," Cohen said.

Also according to Cohen, Western has been "shortlisted on a major utility's" request for proposals.

"We've signed an exclusivity agreement with (an out-ofstate utility) which gives us six months to complete a contract. It's contingent upon successful negotiations," Cohen said, but he would not reveal the company's name.

A contract to sell power produced by the proposed plant is a necessity.

In early June, Cohen received a letter of termination of his company's contract with Public Service Company of New Mexico after he had met with PNM officials to request an extension.

Don Brown, director of communications for PNM, said in an earlier interview that Western was supposed to have financing for the project last year. PNM officials were not convinced that Western would be able to finance the project, Brown said.

Cohen remains upbeat on that score, as well.

"We're in negotiations with a number of parties who want to participate in the project. We're very optimistic," Cohen said.

In June, Cohen said in an interview that Western needed to raise up to $40 million in equity to begin construction.

Also a permit issued by the New Mexico Environment Department's Air Quality Bureau and a renewable energy production tax credit issued by the Energy, Minerals and Natural Resources Department in February are not in danger of expiring, Cohen said.

"The air permit is a five-year permit. The tax credit we have to commence by February 14. Yes, I think that's possible," Cohen said.

"Our goal is to commence (breaking ground) as soon as possible," Cohen said.

(c) 2008 Albuquerque Journal. Provided by ProQuest LLC. All rights Reserved.