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LLEG - Local Positive Press Reaction To Proposed Project
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"IN BERLIN, NEW HOPE FOR MILL"
By Lorna Colquhoun
New Hampshire Union Leader Correspondent
19 hours, 21 minutes ago

BERLIN – A New York-based energy company is proposing construction of a 50-megawatt biomass energy power plant that could begin operation at the site of the former pulp mill by late next year.

Laidlaw Energy Group and its affiliate, Laidlaw EcoPower, has agreed to acquire some of the property and assets of the pulp mill last operated by Fraser Papers. Laidlaw Energy Group predicts the plant would use about 500,000 tons of wood chips annually. That would support 500 jobs for truckers and loggers, as well as local businesses that provide goods and services to those involved. The plant itself would create 40 jobs.

Laidlaw Energy Group and its affiliate, Laidlaw EcoPower, has agreed to acquire some of the property and assets of the pulp mill last operated by Fraser Papers, which closed nearly a year ago.

It is the second renewable energy plant proposed in Coos County in less than two months. In February, North Country Renewable Energy announced its intent to develop a $200 million renewable energy park in Groveton, including a 45- to 75-megawatt wood-fired electric generation facility and a biofuels manufacturing facility producing ethanol and other fuel additives.

The existing infrastructure of the pulp mill, portions of which are being dismantled, attracted Laidlaw, according to company President and CEO Michael Bartoszek. Especially of interest was the 11-story, $100 million Babcock & Wilcox boiler installed 14 years ago.

Officials in Berlin and Coos County reacted yesterday with cautious optimism.

"If it's true, it's great news," said City Manager Pat McQueen. "Energy is something that is needed and clearly there is a lot of biomass in the North Country."

"(The biomass plant) is not as labor-intensive as the paper mill, but these will be well-paying jobs," Bartoszek said. "There will be a significant amount of indirect jobs."

The closing of the pulp mill last May left more than 200 mill workers without jobs and questions in the city about what would replace the tax base.

"It's important to keep the industrial base, good-paying jobs and the tax base," said Mayor Bob Danderson. "I'm very happy for that - we weren't sure what would be left that would be taxable."

Laidlaw has entered into an agreement with North American Dismantling, which will retain an equity position in the project. NAD purchased the mill property last October and has been tearing down a number of buildings over the past few months. The two companies "intend to work together to develop" about 130 acres for manufacturing.

"Our goal would be to bring in a business that needs low-cost electricity," he said. "I think that is a very real possibility and it will be a very attractive site."

Coos Economic Development Corp. Director Peter Riviere said the county "is reasonably poised to take advantage" of renewable energy. But he said he is concerned whether the wood supply can handle two biomass plants. He also questions whether the present transmission lines are sufficient to get the power out of the northernmost county.

The region has prompted great interest in biomass and alternative energy projects, said New Hampshire Timberland Owners Association Director Jasen Stock, with the closure of the pulp mill in Berlin and Groveton Paperboard a year ago in Northumberland.

"Now that the mills are closed, there is quite a bit of interest in tapping into the resource in Berlin," he said.

Between the two mills, he said, about 1.2 million tons of wood were consumed and the two plants will likely use that much.

"We have plenty of wood left," said state Sen. John Gallus, R-Berlin, who added that he was "thrilled" to learn about the Laidlaw project yesterday.

Laidlaw will utilize its relationship with Basic Energy, which assisted with the Laidlaw development of a biomass energy plant in New York. Basic has a portfolio of over 1,200 megawatts of generation and owns an electric utility in the Caribbean.

Bartoszek said the acquisition from NAD should close within the next few months.
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