Port Townsend Paper Corp. Drops Biomass Expansion Plans

Port Townsend Paper Corp. has abandoned a much-disputed $54 million project that would have upgraded the mill’s biomass cogeneration plant. Company President Roger Hagan told the Peninsula Daily News on Wednesday that the company’s construction permit will not be extended beyond the 18-month June deadline for the improvements. “It’s not a financially viable project,” said […]

Port Townsend Paper Corp. has abandoned a much-disputed $54 million project that would have upgraded the mill’s biomass cogeneration plant.

Company President Roger Hagan told the Peninsula Daily News on Wednesday that the company’s construction permit will not be extended beyond the 18-month June deadline for the improvements.

“It’s not a financially viable project,” said Hagan, who took over at the mill last May, succeeding Roger Loney. “It is not our intention to proceed with the project or ask for another extension.”

He attributed the decision to environmental challenges that delayed the project, an overwhelmingly strong market for cheap natural gas compared with biomass and the expiration of federal tax-credit incentive programs despite a $2 million state grant for the project that the company received in 2009. The project would have allowed the factory to burn forest biomass to create 24 megawatts for sale as green energy.

Nippon Paper Industries USA in Port Angeles has built an $85 million expansion of its biomass cogeneration plant that was dedicated in November but has yet to go online while a new boiler is repaired.

From PeninsulaDailyNews.com: http://www.peninsuladailynews.com/article/20140404/news/304049966/port-townsend-paper-corp-drops-biomass-expansion-plans

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