Kelley calls Laidlaw biomass
proposal a ‘great project for Berlin’
BY BARBARA TETREAULT
THE BERLIN DAILY SUN
BERLIN — Local businessman Barry Kelley delivered a
persuasive argument for Laidlaw Energy’s biomass project
at Monday’s city council work session.
Covering everything from wood supply to local economic
impacts, Kelley questioned why the mayor and council
were not supporting a project that would create 40 jobs and
substantial tax revenue.
“I think it’s a great project for Berlin,” he said.
Kelley said the project would clean up the pulp mill site
further by converting the boiler to a 66-megawatt biomass
plant. He said there is construction debris and stuff buried
on the site. Kelley also stressed the biomass plant would
not create the noise or smell associated with the pulp mill.
If the Laidlaw project is not successful, Kelley said the
city could be left with the boiler just sitting on the site for
years. He noted the price for scrap metal has dropped 75
percent since North American Dismantling cleared most of
the mill property. NAD sold the boiler and 60 acres to Laidlaw
in a deal that was closed just before Christmas.
Kelley questioned why the city has chosen to support
the smaller 22 to 27 megawatt biomass project proposed
by Clean Power Development. He said that project would
employ fewer people and has indicated it would seek to
make a payment in lieu of property taxes.
Furthermore, he said Laidlaw already has its fi nancing
in place and has signed an agreement to sell the power produced
by the plant to Public Service of N.H. He said Clean
Power has neither of those steps completed.
“Public Service has given them their stamp of approval,”
Kelley said.
Kelley, who owns White Mountain Lumber, spent considerable
time addressing the wood supply issue. Clean Power
downsized their project over concerns about the availability
of affordable biomass. A study commissioned by Clean
Power estimated there would be 300,000 tons of biomass
available annually within a 30-mile radius of Berlin at
an affordable price. A study done for the state and North
Country Council estimated a range of 240,000 to 950,000
tons available annually with an average of 600,000 tons.
Laidlaw would use about 675,000 tons annually.
In the last six weeks, Kelley said the market for pulp wood
has changed dramatically. The price per ton has dropped
from $54 to $32 and wood buyers have set quotas for log-
gers because of oversupply.
Looking to the future, Kelley said
a number of mills in northern New
England are facing fi nancial pressure.
If another mill closes, that would
increase the low grade wood supply.
He pointed out the paper business is
cyclical and argued the Laidlaw plant
would create a steady market for low
grade wood.
Kelley also noted power production
is recession-proof and not subject to
foreign competition.
“You bring paper from China. You
bring paper from Indonesia. You don’t
bring energy from those areas,” he
said.
Converting the boiler to a biomass
plant would turn the mill site into a
catalyst for economic development,
Kelley said. He noted Laidlaw already
has a memorandum of understanding
to sell hot water to Fraser Paper’s Cascade
mill. He said Laidlaw would use
about 20 acres for its biomass operation
and would have 40 acres available
for other compatible businesses.
NAD has another 60 acres. With both
biomass and hydro power concentrated
on and abutting the milll site,
Kelley said Berlin could be a center
for renewable energy production.
“We will be the green machine of
New Hampshire,” Kelley argued.
The new jobs and added wood purchases
would stimulate the local economy
which he said would help local
merchants, including those on Main
Street.
Kelley was asked about the ability
of the transmission line in Coos
County to handle both the wind park
planned for the Phillips Brook area
and the Laidlaw plant. He said his
understanding is the line with some
upgrading could handle the 99-megawatt
wind farm and either the Laidlaw
or Clean Power plant. The wind farm,
proposed by Noble Environmental, is
ahead of both projects in the interconnection
queue. Noble has withdrawn
a second proposal for a 140-megawatt
plant from the queue.
A small crowd turned out for Kelley’s
presentation. Most appeared supportive
of the Laidlaw proposal although
Clean Power project manager Bill
Gabler was among the crowd.
Kelley concluded by recalling Berlin’s
long history as the city that trees
built and calling the boiler a testament
to that past.
“That’s not a monstrosity over
there. That’s a monument,” he said, to
applause from the crowd
