Altamaha Green Energy to supply 70 MW to Georgia Power

JESUP, Ga. - Altamaha Green Energy (AGE), a joint venture between Beasley Green Power, LLC and Rayonier Advanced Materials (NYSE:RYAM), has secured a deal to supply up to 70 megawatts (MW) of electricity to Georgia Power Company. The Georgia Public Service Commission has certified a Power Purchase Agreement that spans a 30-year period, signaling a significant advancement for AGE's renewable energy project in Georgia.

The project, which is still in its development phase, will focus on converting forestry waste into sustainable electricity. This effort is expected to meet some of the growing demand for renewable energy in the state, while simultaneously bolstering the local forestry economy and creating job opportunities.

Darrell Beasley, Chairman of AGE, highlighted the joint venture's formation as a direct response to Georgia Power's search for renewable energy solutions through a competitive bidding process. The collaboration leverages Beasley's expertise in renewable forestry operations and RYAM's specialized high-purity cellulose plant located in Jesup.

AGE's initiative to harness biomass, such as bark and tree limbs typically regarded as waste, for electricity generation aligns with the increasing emphasis on sustainable energy production. The company has committed to providing further updates as the project progresses.

Beasley Green Power, LLC, part of the Beasley Group, is known for its global presence in the forest products industry, offering a wide range of wood products and related services. RYAM, on the other hand, is recognized for its cellulose-based technologies and a diverse portfolio that includes biofuels and other biomaterials. In 2023, RYAM generated $1.6 billion in revenue.

The certification of the Power Purchase Agreement by the Georgia Public Service Commission marks a pivotal step for AGE and its contribution to renewable energy in Georgia. This information is based on a press release statement from Altamaha Green Energy.

In other recent news, Rayonier (NYSE:RYN) Advanced Materials has seen several significant developments. RBC Capital Markets increased the shares price target for the chemical company to $10.00, maintaining its Outperform rating. This decision follows a series of meetings between Rayonier's executives and investors, providing insights into the company's current initiatives and future plans, including efforts to refinance its 2026 notes and a positive strategy concerning Biomaterials.

Additionally, Rayonier announced a price increase for its Cellulose Specialties products due to ongoing market dynamics and escalating costs. This decision reflects the company's response to current economic conditions and its commitment to financial sustainability. The company reported revenues of approximately $1.6 billion for the year 2023.

Furthermore, Rayonier's second-quarter earnings for 2024 showed a 152% surge in Adjusted EBITDA, attributed to improvements across multiple segments. The company also increased its full-year EBITDA and adjusted free cash flow guidance, indicating an optimistic outlook for the year. Rayonier is also progressing with its biomaterials projects, including the prebiotics animal feed product, with production trials set for September and a late 2025 start-up.

These recent developments underscore Rayonier's strategic financial maneuvers, asset sales, and potential for long-term growth.

InvestingPro Insights

In light of the recent agreement between Altamaha Green Energy (AGE) and Georgia Power Company, it's pertinent to consider the financial health and market performance of Rayonier Advanced Materials (RYAM), a key player in this joint venture. According to real-time data from InvestingPro, RYAM has a market capitalization of $531.75 million, indicating a substantial presence in the industry. Despite facing challenges such as weak gross profit margins of 7.58% over the last twelve months as of Q2 2024, RYAM is expected to see net income growth this year, which could bode well for the joint venture's financial stability and future prospects.

An InvestingPro Tip worth noting is RYAM's high shareholder yield, which, when combined with the company's significant return over the last year of 186.17%, suggests that investors have been rewarded for their confidence in the company. This performance is further underscored by a strong return over the last three months, with a price total return of 44.36%. Such promising returns align with the company's strategic movements, including the latest renewable energy project with AGE.

Although RYAM does not pay dividends, the company's stock price has experienced a large uptick over the last six months, trading near its 52-week high at 96.19% of that peak. This price action reflects investor optimism and may be influenced by the expectation that analysts predict the company will be profitable this year. For a more comprehensive analysis, interested readers can find a total of 13 InvestingPro Tips at https://www.investing.com/pro/RYAM, offering deeper insights into RYAM's financial health and market performance.

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