PORT TOWNSEND — The Port Townsend Paper Corp. mill has been awarded a $2 million state grant to upgrade its biomass cogeneration boiler and plant, which will help retain the mill’s existing 209 jobs and create 108 temporary jobs.
The Renewable State Energy Program grant from the state Department of Commerce — which administers funds from the federal Department of Commerce — ultimately is expected to provide green power to the mill and Puget Sound Energy customer grid.
State Commerce also has awarded Fort Worden State Park a $250,000 loan to upgrade energy efficiency of several fort buildings with a new boiler, windows, insulation and low-energy lighting.
The Fort Worden energy efficiency project for five park buildings will create two temporary jobs.
The Port Townsend mill’s received the largest single grant of the 19 recipients statewide, chosen from 120 applicants for more than $20 million in grants and loans from the American Recovery and Reinvestment Act.
Gov. Chris Gregoire and state Commerce announced the recipients of the grants for energy efficiency, renewable energy and clean technology programs Monday.
Port Townsend Paper also agreed to leverage $53 million in additional funding to match the grant.
Roger Loney, Port Townsend Paper mill senior vice president and mill manager, issued a prepared statement Tuesday.
“We have produced alternative energy from biomass for many years and are pleased that this project will increase our electricity generation capacity and make it available to the public,” Loney said.
“This project will reduce greenhouse gases and our dependency on foreign fossil fuels.”
Power generated through cogeneration can be returned to the PSE grid.
Statewide grants
The funding addresses a specific goal to reduce energy consumption by at least 25 percent of the state’s 1990 per capita energy use by 2012.
The private and public project applicants were selected based on their ability to:
• Implement a project that will produce tangible results.
• Create or retain jobs.
• Leverage other funds.
• Increase energy efficiency and production to in turn reduce energy costs and consumption for consumers, business and government.
“We’re really excited about the opportunity for Washington businesses to do more great energy work,” said Cory Plantenberg, state Commerce energy program manager.
“These are the good, basic projects that we think are great.”
Plantenberg said proven technology and additional modern pollution control systems would be added to the mill’s cogeneration plant.
Plantenberg said the mill would have to negotiate the amount of matching funds it would come up with for the new cogeneration facility, and it would have to go through the National Environmental Policy Act project review process.
Loney thanked the 24th District delegation — state Sen. Jim Hargrove, D-Hoquiam and Reps. Lynn Kessler, D-Hoquiam, and Kevin Van De Wege, D-Sequim, all of whom represent Jefferson, Clallam and part of Grays Harbor counties — for their help in securing the grant.
More stimulus dollars — $18.5 million — will be coming early next year to more energy projects, Plantenberg said.
Second round
“This is first round,” she said. “The second round is to have guidelines out in December, with applications taken in January.”
Statewide projects are expected to support or create more than 2,000 permanent and temporary jobs.
Earlier this year, the U.S. Department of Energy announced more than $60 million in recovery act funds to Washington state to help lower energy use, reduce carbon pollution and create clean energy jobs.
The remaining funding for grants and loans will be distributed by Commerce early in 2010, following another project review cycle at the end of this year.
For more information about State Energy Program funding available through the American Recovery and Reinvestment Act, see the Department of Commerce Recovery Web site at www.commerce.wa.gov/recovery.
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Port Townsend-Jefferson County Editor Jeff Chew can be reached at 360-385-2335 or at jeff.chew@peninsuladailynews.com.