Laidlaw to build 50 MW woodchip power plant in NH

Laidlaw Energy Group today announced intentions to convert a former paper mill in New Hampshire to a woodchip-fired electricity plant.

Laidlaw plans to convert the Fraser Paper Mill in Berlin, NH,to into a 50 megawatt biomass-energy power plant.

The mill, which closed in May 2006, has significant infrastructure in place that is suitable for biomass energy, including a large Babcock & Wilcox boiler that was installed in 1993 at a cost of nearly $100 million, the company said.

The newly reconfigured plant is to use over 500,000 tons of biomass per year, creating and sustaining approximately 500 local jobs for truckers and forest products workers who will supply wood chips, as well as local businesses that will provide goods and services.

Laidlaw is in discussions with other parties that could potentially be ideal for occupying the balance of the site and have a synergistic relationship. A combined heat and power application could ultimately be the result, whereby the plant would supply electricity and excess thermal energy to a manufacturing entity for process heating purposes, the company said.

A biofuel application that would have a synergistic relationship through the common use of biomass fuel is also being considered.

Emissions from the biomass-energy facility are to be minimized through the use of advanced emissions controls that are expected to enable the plant to qualify for the renewable energy programs of various states in the Northeast and allow for the sale of Renewable Energy Credits (RECs).

The Berlin Project is to be a joint effort between Laidlaw Energy Group, Inc. and EcoPower, a local business whose principals have experience in the development and operations of biomass-energy facilities.

Basic Energy, with whom Laidlaw has an existing development relationship in connection with its New York biomass-energy project (see Laidlaw asks shareholders for patience) has agreed to partner with Laidlaw in this project and provide the requisite financing. Basic’s principal owner is an international power developer with a portfolio of over 1,200 megawatts of generation and is also owner of a large electric utility in the Caribbean.

The acquisition is expected to close within the next several months. The Berlin biomass-energy facility is expected to commence operations in late 2008.

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