PORT ANGELES — Nippon Paper Industries’ mill in Port Angeles will receive $2 million in federal funding to build a larger biomass boiler — if the project is approved by headquarters in Japan.
The funding, made up of a $1.4 million loan and $600,000 grant, was announced Tuesday by the state Department of Natural Resources.
Harold Norlund, manager of the Nippon Paper Industries USA Co. mill, said the higher-ups will consider approving the project about June.
“It’s a huge project for us,” he said. “We are certainly excited about the opportunity.”
The total project will cost about $60 million, Norlund said.
Norlund said the boiler, if approved, could begin operating in early 2012.
The new boiler would benefit the mill because it could generate 20 megawatts of green power that it could sell, he said.
That would pay for the boiler and be a profit-generator down the line, Norlund said.
The current boiler, built in 1957 and also powered by biomass, is too small to do that, he said.
Norlund traveled to Japan last January to pitch the project and will return in May for a final presentation.
“Hopefully we will keep getting head nods,” he said.
The paper maker is one of two companies in the state to be allocated federal funds through the state’s biomass pilot projects.
The other, Borgford Bioenergy in Stevens County, will use a $771,406 loan and grant package to produce “biopower.”
The pilot projects, intended to promote biomass, were authorized through a bill introduced in the state Legislature by Rep. Kevin Van De Wege, D-Sequim, last year.
Van De Wege referred to Nippon being approved for the funding as a win for the timber industry on the North Olympic Peninsula.
“Biomass has a lot of promise on the Olympic Peninsula,” said Van De Wege, who represents the 24th District, which covers Clallam, Jefferson and Grays Harbor counties.
“It’s good for the timber industry and it will create energy sector jobs.”
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
