January 18, 2022 - Charah® Solutions, Inc. (NYSE: CHRA) (the “Company”), a leading provider of environmental services and byproduct sales to the power generation industry, today announced that it has completed the sale of nearly 80% of the real property acreage that the Company acquired through a subsidiary in February 2021 from the Texas Municipal Power Agency (TMPA) at the former Gibbons Creek Steam Electric Station and Reservoir in Grimes County, TX. A local investor group has purchased and closed on 4,860 acres of the 6,166 acre area, including the 3,500 acre reservoir, dam and spillway with the intent of future residential development. Terms of the transaction were not disclosed.
Charah Solutions’ proven Environmental Risk Transfer (ERT) services model has resulted in sale of the property in just 10 months since the site was acquired from TMPA. In October 2021, the Company completed the implosion of the retired coal-fired power plant as part of the shutdown and decommissioning process. Environmental remediation work for the existing ash ponds and landfills is underway and ahead of schedule and is expected to continue through 2023. A contract for the sale of the remaining 20% of the real property acreage, which includes the site’s higher value commercial and infrastructure assets such as office buildings, gas line, warehouses, rail line and access to the power distribution switchyard, is expected to be announced in 2022, completing the full sale of the property.
As previously announced, Charah Solutions, through its subsidiary Gibbons Creek Environmental Redevelopment Group, LLC (GCERG), is remediating and repositioning the property in an environmentally conscious manner that expands economic activity and benefits the surrounding communities through job creation, promotion of industry, and support of the tax base, including the Grimes County Schools. GCERG has retained Avison Young to provide real estate advisory, development, and brokerage services to oversee the redevelopment and future sale of the remaining 20% of the Gibbons Creek property.
An industry leader in providing ERT services to the power generation industry, Charah Solutions has multiple ERT projects underway, including the former B.C. Cobb Generating Facility ERT project located in Muskegon, MI, which is on schedule to be completed in 2022, as well as the recently announced Avon Lake Generating Station ERT project in Avon Lake, OH.
Charah Solutions is dedicated to preserving natural resources in an environmentally conscious manner through environmental remediation and redevelopment projects such as the Gibbons Creek project. Sustainability is a Charah Solutions core value, and Charah Solutions focuses its business on developing innovative solutions to complex environmental issues for the betterment of the planet, the communities in which it operates, its customers and its investors. Charah Solutions' sustainability services reduce greenhouse gas emissions, decrease landfill disposal, remediate land for community and business use, conserve natural resources, and protect waterways. For more information regarding Charah Solutions’ commitment to sustainable practices, download our 2020 Environmental, Social and Governance (ESG) Report at charah.com/sustainability.
According to Scott Sewell, Charah Solutions President and CEO, “I am very pleased to achieve this important milestone at Gibbons Creek. In only 10 months, our team has successfully executed our Environmental Risk Transfer services to benefit not just our utility partners but our shareholders, local communities, and the environment. This proven strategy represents one of our most innovative solutions designed to meet the evolving and increasingly complex needs for utilities. Given the increased need to retire and decommission older or less economically viable generating assets over the next 20 years, we believe this service offering will continue to grow dramatically as we work with our utility partners to minimize costs and maximize the value of the assets and improve the environment. Through our custom approach for these complex projects, we provide not only the environmental remediation expertise needed to meet regulations but also the ability to redevelop the property in an environmentally responsible way while creating local jobs and lowering the cost for our utility partner. And as this sale represents, by matching the right potential buyers to the right assets, we plan to achieve the greatest possible outcome for the property and the surrounding communities.”