Algorhythm Holdings has outlined plans for a 100MW biomass power generation facility in North Carolina, with development scheduled in two phases and the first 50MW of capacity expected to become operational within approximately two years.
The project, being developed by the company’s renewable energy subsidiary Azure Energy, will use pyrolysis technology to convert regional woody biomass into electricity and water.
Located in western North Carolina, the proposed facility is designed to provide continuous, dispatchable electricity for industrial and advanced manufacturing operations requiring reliable power supplies.
Algorhythm Holdings said the project represents one of three active developments being advanced by Azure Energy and is currently the most progressed within its portfolio.
Two-phase development targets 100MW capacity
The facility is planned as a two-stage development, with separate construction and operational milestones.
The first phase is expected to deliver 50MW of generating capacity and become fully operational within approximately 24 months.
A second phase would add another 50MW, doubling the facility’s total capacity to 100MW. The company anticipates that this expansion would require a further 12 months to complete.
The proposed plant will use pyrolysis technology to process woody biomass sourced from the surrounding region.
According to the developer, the facility is intended to operate continuously, providing baseload electricity rather than relying on intermittent renewable generation.
This capability is being positioned towards industrial customers and advanced manufacturing facilities where electricity supply interruptions can affect operational performance.
The company has not disclosed the total construction cost, detailed procurement arrangements or the identity of the project’s engineering and construction contractors.
Developer forecasts $3m in project fees during 2027
Algorhythm Holdings said Azure Energy expects to generate approximately $3 million in fee income from the project during 2027 under existing contractual arrangements.
The company has also identified two potential routes for generating further financial returns from the development.
Under the first scenario, Azure would retain its minority equity interest in the facility following completion.
If the project progresses according to schedule, the company forecasts annual earnings before interest, taxes, depreciation and amortisation (EBITDA) exceeding $4 million from its stake once the initial facility becomes operational in late 2028.
Alternatively, Azure could sell its interest in the development following completion of the final permitting process.
Algorhythm estimates that the project could achieve a valuation of up to $70 million under this scenario.
The estimate is based on an assumed valuation of approximately $1 million per powered acre, referencing data from Colliers’ 2026 US Data Center Marketplace Report.
At that valuation, Azure expects its minority equity stake could generate approximately $7 million in proceeds, alongside additional fees associated with managing the transaction.
These figures represent company forecasts and potential transaction values rather than confirmed financial outcomes.
Potential sale to be evaluated before end of 2026
Azure Energy expects to begin marketing the project and evaluating potential acquisition offers before the end of the fourth quarter of 2026.
The decision to retain or sell its equity interest will determine whether the company continues to participate in the project’s operational earnings or realises value through a development-stage transaction.
Andrew Thompson, Chief Executive Officer of Algorhythm Holdings, said the North Carolina facility was central to the company’s near-term financial plans.
“Our North Carolina project is one of three active, highly attractive projects our team is helping advance today,” he said.
Thompson added that the project was the most advanced of Azure’s current developments and could support the company’s efforts to strengthen its balance sheet and accelerate growth in 2027.
Project development linked to industrial power demand
The proposed biomass facility forms part of Azure Energy’s renewable power development activities, with a focus on electricity generation capable of supporting energy-intensive industrial operations.
The development programme combines staged capacity expansion with a potential ownership transaction before construction and commissioning are completed.
Its next milestones include progressing the remaining permitting requirements, assessing potential buyers and advancing the first 50MW phase towards the company’s targeted late-2028 operational date.
The full 100MW development remains subject to successful delivery of both phases, with the second stage expected to follow approximately 12 months after the first becomes operational.
