PORT ANGELES — The head of Nippon’s Port Angeles paper mill said he’s not concerned that plans for a proposed biomass energy plant in Mason County were dropped earlier this week.
AREVA and Duke Energy, the companies that planned to build the $250 million 55-megawatt ADAGE electrical power plant near Shelton, said the decision was prompted by economic concerns.
Harold Norlund, Nippon Paper Industries USA mill manager, said he doesn’t share the same concerns for the economic viability of the Port Angeles mill’s project.
That’s because, he said, Nippon’s project would be much more efficient because the steam and energy produced also would be used to manufacture paper.
“That makes quite a difference in your input costs,” he said.
Nippon Paper Industries USA plans a $71 million upgrade of its biomass boiler that would double the amount of wood waste burned to produce steam to make telephone-book paper and newsprint.
The boiler also would generate up to 20 megawatts of electrical power. The company could then sell credits for the electrical power.
The Port Townsend Paper Corp. also has plans to upgrade its biomass boiler in a $55 million project that would generate up to 24 megawatts of electrical power.
Port Townsend Paper mill officials did not return calls requesting comment.
A spokeswoman for one of the environmental groups appealing both biomass projects said there’s more to it than efficiency.
Gretchen Brewer of Port Townsend AirWatchers said she thinks biomass projects aren’t economically viable and that some can make it work only because of a federal tax credit.
“I just think that the fact they are having to depend on these huge taxpayer subsidies, that tells you right there,” she said.
Nippon’s project is eligible for about $20 million in federal tax credits.
The appeal of Nippon’s project will be heard April 7 and May 2-3 by the state Shoreline Hearings Board.
An appeal of the Port Townsend mill’s project will be before the state Pollution Control Hearings Board on June 2-3.
In addition to Port Townsend AirWatchers, groups appealing the Nippon plant’s plans are Olympic Forest Coalition, Olympic Environmental Council, No Biomass Burn of Seattle, the Center for Environmental Law and Policy of Spokane, the World Temperate Rainforest Network and the Cascade Chapter of the Sierra Club.
The Center for Environmental Law and Policy of Spokane and the Cascade Chapter of the Sierra Club did not join the appeal of the Port Townsend mill’s facility.