Thermogen ditches pellet tech licensed in 2011
Cate Street Capital plans to move away from torrefied wood pellet technology it licensed through subsidiary Thermogen in 2011 in favor of a more expensive facility it said could more than triple its production of wood pellets at a former paper mill in Millinocket.
The Bangor Daily News reported the company wants to replace its plan for a $70 million microwave torrefaction plant for a $140 million steam-thermal plant similar to others in Crockett, Texas, and Selma, Ala. Thermogen paid more than $20 million in December 2011 to secure exclusive North American rights to produce biocoal using a machine developed by Scotland-based Rotawave Biocoal.
Cate Street, which has missed numerous construction deadlines for its torrefied wood project, presented is planned change to the Finance Authority of Maine during a February meeting to see if the alteration would invalidate the $25 million bond backing the project. The company has received more than $142 million in federal and state tax breaks and loans for the mills and torrefaction project since September 2011, the newspaper reported.
FAME board member Patrick Murphy told the newspaper the board wants to look more closely at the changes and consult with the finance authority’s attorney.
Cate Street, which also owns the Great Northern Paper mill in East Millinocket, is separately lobbying the Legislature to approve a bill that would force Brookfield Renewable Asset Management to share profits with the mill owner for hydropower generated at three dams on the Penobscot River. That mill stopped production in January to retool its business plan. The company also owes a combined $3 million in overdue property taxes to Millinocket and East Millinocket.
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