Cate Street Capital, which bought the former Katahdin Paper Co. mills in northern Maine, yesterday unveiled more details about its plans to manufacture a wood-derived type of fuel. The company also plans to create an industrial park to attract more jobs to the Millinocket region.
Company and Millinocket officials met yesterday to review Cate Street's plans for a $35 million torrefied wood manufacturing facility they plan to build at that town's mill, according to the Bangor Daily News. In December, the New Hampshire-based company bought the North American rights to manufacture the technology through a subsidiary, Thermogen Industries. The technology would replace coal burned at electricity plants. The company initially planned to install the first machines in Millinocket starting this November, but yesterday pushed the timeline back to 2013.
Company officials said restarting paper-making at the Millinocket mill is not economically feasible without an affordable energy source, like natural gas, so they plan to market the property as an industrial park to bring new manufacturers to the region. Should natural gas become an option, the mill could restart, but probably not for at least two years, Cate Street COO Richard Cyr told the paper. The company's East Millinocket paper mill is currently operational and employs 225 people.