Sludge Watch ==> Arizona Biomass Plant - paper sludge and wood chips

[maureen.reilly at sympatico.ca]

http://www.azjournal.com/pages/news/2006/July06/072106Biomass.html


July 21, 2006


Biomass Plant Gets Approval For $39 Million In Tax Exempt Bonds

By Tammy Gray-Searles

The Navajo County Board of Supervisors gave their approval for the issuance 
of $39.25 million in solid waste disposal revenue bonds by the Industrial 
Development Authority of Show Low to finance the biomass electrical plant to 
be located next to the Abitibi paper mill near Snowflake.

Attorney for the Snowflake White Mountain Power Biomass Plant John Overdorff 
explained that the county will not bear any liability for repayment of the 
bonds, but their approval is required because the bonds are tax exempt.

Biomass plant official Scott Higginson explained that construction on the 
plant has already begun, and over one years’ worth of fuel has been hauled 
to the site. He also told the board that a used boiler is being shipped from 
Texas, and a new boiler, turbine and generator are currently in Maine being 
inspected prior to shipment.

According to Higginson, construction is expected to take a little over a 
year, and the plant should be in operation by the end of 2007. He noted a 
20-year agreement to sell the power to Arizona Public Service Co. is already 
in place and the biomass plant’s sister company has already started work 
gathering fuel from areas damaged by the Rodeo-Chedeski fire.

“You should begin seeing vertical building by September, and we expect to 
finish construction by fall of 2007,” Higginson said.

Higginson also told the board that approximately 60 people are already 
employed with sister company Renegy gathering fuel, and that about 10 more 
permanent jobs will be created when the plant begins operation. He noted 
that energy created by the plant will serve the Snowflake, Show Low and 
Pinetop-Lakeside areas.

The biomass plant will burn a mixture of paper sludge created at Abitibi and 
wood chips procured from forest thinning projects to create energy. Because 
it is using products that would otherwise wind up in a landfill, the plant 
is considered a solid waste disposal facility and is eligible for certain 
tax credits, including the tax exempt bonds approved by the supervisors.

Higginson told the board that the biomass plant will benefit the local area 
in several ways, including the creation of new jobs, stimulating the 
economy, increasing the stability of the local power grid, and by improving 
local forest health through the removal of dead trees.