Paper Plant Closes, Biomass Plan Carries On
PHOTO/LIVIA GERSHON
Developers of a biomass plant at Munksjo Paper in Fitchburg are moving forward even though the plant is closing.
Last year, CCI Energy LLC of Plymouth was planning a biomass plant at the Munksjo paper mill in Fitchburg. Now, Munksjo is closing the factory, taking 100 jobs with it. But, according to CCI President Jim Sweeney, the wood chip-fueled plant is still set to move forward.
Sweeney hasn’t given up on Munksjo. The Swedish company says it was forced to shut the mill, which made paper products used in the construction industry, because of economic conditions. But Sweeney said CCI is still in talks with it about the possibility that it will return.
In fact, he said, one of the things that put the mill out of business was the high cost of energy, which the biomass plant would mitigate. He said he expects to have the power plant built in a couple of years, and that may give Munksjo a good reason to reopen in town.
Meanwhile, the company is retaining some presence at the facility, with about 20 sales and customer service employees staying on to help sell products produced overseas.
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Even if the production portion of the facility never gets back up and running, Sweeney said, the biomass plant will still be able to make money, selling power to the grid. Although the original plan was to use heat from the energy generation process in paper-making, he said it could be used to generate more electricity instead.
Sweeney said plans for the plant, which was originally expected to generate 15 megawatts and cost $60 million, have been downsized to 5 megawatts to simplify the approval process.
That means the total cost, originally estimated at $60 million, will be less, though he’s not sure of the exact figure yet. He said CCI has a financing agreement that he’s confident will cover the full cost of the project with an individual from outside the country who doesn’t want his name revealed yet.
The plant is now in the permitting process, Sweeney said, and should be through that in about six months. Ordering and receiving equipment will also take about a year, but he said it should be under construction by this time next year.
CCI has also been planning another biomass plant at the Simmonds International factory at the Fitchburg Airport Industrial Park, but Sweeney said that project is now tied up over funding delays.
He said he expects the project will move forward eventually, either with CCI or with some other company.
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