Maine torrefied pellet plant gets loan guarantee
The Finance Authority of Maine (FAME) board recently approved a $25 million loan guarantee to support a proposed torrefied wood pellet project under development by Thermogen Industries, an entity of Cate Street Capital, in Millinocket, Maine.
The plant will initially have the capacity to produce 100,000 tons of torrefied wood pellets per year, with production expected to expand to 500,000 tons at a later date. Construction is currently expected to start this winter, with production commencing before the end of this year.
The plant will employ a unique torrefaction technology developed by Scotland-based Rotawave. The process uses microwave technology coupled with traditional thermal technology to more effectively “cook” the pellet from the inside out, resulting in a more uniform product.
In addition to the loan guarantee, the project is funded by $26 million in private equity investment and $19 million in financing from the New Market Tax Credit Program. Thermogen Industries plans to construct a similar 300,000-ton-per-year plant in Eastport, Maine.