Company News

Youngstown Thermal Plans Sale of Assets

YOUNGSTOWN, Ohio – Youngstown Thermal Inc., a district steam heat provider that supplies energy to a portion of downtown, plans to sell its assets to an entity that is interested in developing a “world-class energy system for Youngstown,” the company announced Monday.

According to a press release Youngstown Thermal issued, two French companies, Engie and Veolia, are the two “major suitors for the Youngstown steam system assets.”

Engie recently paid $1 billion for the Ohio State University district heating and cooling system while Veolia owns large steam systems in Philadelphia, Boston, Baltimore and St. Louis, Youngstown Thermal said.

The sale is the first step toward the establishment of a “world-class community energy system” that is similar to a model used in Denmark, according to Youngstown Thermal.

That country has established one of the most energy-efficient district heating operations in the world, according to Youngstown Thermal. France and Denmark also use alternative fuel sources to generate steam heat.

Calls to Youngstown Thermal CEO Carl Avers were not returned.

The replacement value of Youngstown Thermal’s assets is $91 million, according to the company. The system is composed of six miles of underground steam pipe and its plant at 205 North Avenue.

Youngstown Thermal’s sale would be subject to approval by the Public Utilities Commission of Ohio.

BACKGROUND
Nov. 8, 2016: Youngstown Thermal Makes Its Case to City Council
Oct. 2, 2015: Youngstown Thermal Named Test Site for $75M Project
July 31, 2015: Avers Responds to Stories about Youngstown Thermal
July 28, 2015: $5M Price Tag for Thermal’s Turnaround Plan
July 25, 2015: Thermal Losing 60% of Revenue; CEO in Bankruptcy

Published by The Business Journal, Youngstown, Ohio.