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Maine paper mill cleared for biomass power conversion

Verso is engaged in a company-wide strategy to use more biomass power at its paper mills

Regulators in Maine have approved a proposed five-year power purchase agreement that will allow a paper mill’s power plant to convert to biomass.

The Maine Public Utilities Commission voted unanimously to support the proposed contract for the project at the Verso Paper Corporation paper mill in Bucksport.

The contract, which includes supply of renewable energy credits (RECs) could also be renewed for a further five year period, will give the company the financial security to go ahead with the $45.9 million conversion of its boiler.

Approval now means the terms of the deal can now be finalized between Verso Bucksport and utility Central Maine Power.

More details on the project are expected to emerge when the contract is agreed.

Value

Commission Chair Jack Cashman said he and his colleagues took a cautious approach to long-term contracts, “knowing the difficulty of predicting future energy and REC pricing”.

However, he said: “This project has the potential to provide modest value to Maine ratepayers in the first five years, with increasing value if the contract is extended for a second 5-year period.

“The project adheres to the state’s policy of reducing greenhouse gas emissions–estimates indicate a 155,000 metric ton reduction in carbon per year by displacing fossil fuel with biomass,” said Mr Cashman.

Maine’s legislation was revised in the 2010 session to allow the inclusion of RECs in long-term power purchase agreements.

Verso has a strategy of converting its paper mills to biomass power, and is in the process of converting another paper mill in northern Michigan (see this BrighterEnergy.org story).

The Bucksport paper mill employs 795 people, producing 1400 tons per day of light weight coated groundwood papers.