1606 Corp. says prospective partners, financing groups, and data center operators recently visited its planned East Texas project as the company evaluates financing, power offtake, and development options.
What happened during the site visits?
1606 Corp. said representatives from prospective counterparties, financing groups, data center operators, potential power offtakers, and engineering and infrastructure companies visited its East Texas project during a week of meetings and site visits.
The company is evaluating several potential transaction structures, including acquisition of the property and project rights, financing for the acquisition and recommissioning of the existing biomass generation facility, power offtake agreements, and joint ventures for data center developments.
The project consists of approximately 132 acres and includes an existing biomass power generation facility and related infrastructure. 1606 has been evaluating the potential recommissioning of the generation facility alongside behind-the-meter power for data centers and supplemental utility power.
The company previously disclosed that the Lufkin project centers on an approximately 55-MW biomass generation facility.
1606 is also evaluating multiple ways to commercialize the property, including strategic partnerships, financing arrangements, power offtake agreements, and a potential sale or assignment of its contractual interests.
What does 1606 say is next?
1606 CEO Austen Lambrecht said the recent visits allowed potential participants to evaluate the facility and infrastructure firsthand.
CEO Austen Lambrecht: "This was an important week for the data center project. We had groups representing several different parts of the transaction process actively evaluating the site, including parties interested in acquiring or participating in the Company's contractual rights and interests, capital providers, and groups interested in utilizing the power for data center operations."
The company said it will continue discussions with the groups involved and is seeking to turn the recent interest into actionable proposals.
The project remains under development.
