Biogreen Sustainable Energy Co. is looking to build a new 20 MW plant in La Pine in central Oregon, and has proposed a $60 million facility. Company officials are seeking federal and state tax credits and grants to cover roughly half the cost, with private investors providing the remainder. Several financing options are being considered.

One principal investor is Larry Olson,  owner of H & H Wood Recyclers Inc. in Vancouver, Wash., who’s looking for a consistent customer for biomass material he can’t currently sell. Plans are to have the new facility up and running within three years after air quality permits are acquired in early 2010.

In other Oregon biomass news, the Port of Morrow in eastern Oregon along the Columbia River signed a letter of intent to sell an older, idled biomass electricity plant in Heppner for $4 million to T2 of Sweet Home, Ore., a company that produces hog fuel. The facility produces 10MW and employs 12-15 people when operating. The plant last operated in 2003, adjacent a sawmill that closed in the mid 1990s.

The deal for the plant states that T2 must make power marketing arrangements, comply with state Dept. of Environmental Quality air and water quality divisions and meet Oregon Dept. of Energy requirements.

Proponents of the bill argued that it would add value to the electricity created by the existing facilities, specifically biomass plants operated by struggling wood products companies. Opponents argued that allowing existing power sources to qualify as renewables would reduce the amount of new renewable resources to come onto the market.

Kulongoski agreed that the bill would diminish the value of the renewable portfolio standard, but he pledged to work with proponents of biomass facilities to develop a policy during the next legislative session in February. The governor said he supports expanding the renewable portfolio standard in a way that would account for the existing plants but still promote the development of new resources.