Maine pellet project awarded loan guarantee
The Finance Authority of Maine (FAME) board has approved a $25 million loan guarantee to support a proposed torrefied wood pellet project in Millinocket, Maine. The project is under development by Thermogen Industries, an entity of Cate Street Capital.
Thermogen spokesman Scott Tranchemontagne said the guarantee is the last piece of the funding puzzle needed to move the project forward. He added that the approval is subject to a 30-day public comment period, which was scheduled to wrap up in mid-November. The project is also funded by a $26 million private equity investment and $19 million in financing from the New Market Tax Credit Program.
According to Tranchemontagne, Thermogen expects to close on all funding sources before the end of the year, with construction beginning as soon as possible thereafter. The plant, which will utilize a unique microwave torrefaction technology developed by Scotland-based Rotawave, will initially have a production capacity of 100,000 tons per year, eventually expanding to 0.5 million tons.