NH - Pellet plant to open

Lakes Region Pellets is a startup producer and supplier of wood pellets for private households and commercial businesses

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Pellet plant to open
In Barnstead:

A new, wood pellet manufacturer in Barnstead has started its hiring process and, with help from state grants requested through the town, hopes to bring a tiny ripple of good news for the local economy.

The N.H. Community Development Finance Authority has approved the request from the town of Barnstead for a $500,000 Community Development Block Grant that will be used to expand the business, created on the former Timco property.

The money is channeled through the Belknap County Economic Development Council which will loan the grant money to Lakes Region Pellets, LLC, so it can purchase equipment and increase job creation.

The business is seen as being beneficial for the state by helping to generate tax revenue as boosting the local economy by putting money into the mom-and-pop stores in town.

Lakes Region Pellets is a startup producer and supplier of wood pellets for private households and commercial businesses, with an alternative biomass fuel source that has boomed in the past couple years. The wood pellets are approximately 6 mm in diameter and are composed of compacted sawdust, used industrial pallets and unusable forest brush. Wood and other raw materials from forests within a 50-mile radius will be the primary materials used for making the pellets, which would create several jobs for logging and trucking.
Lakes Region Pellets already has begun its hiring process, which will continue throughout the year, with plans on hiring up to or more than 20 positions, ranging from direct labor skilled work to managerial positions. At least 60 percent of those jobs are expected to be filled by low- and moderate-income employees with salaries ranging from the low 20s to mid 40s.

Up to 50 ancillary jobs will be created, including foresters, loggers and truckers, with an additional 20 construction jobs being created to help retrofit the former 135-acre lumber facility formerly operated by Timco.

Timco was the largest employer in Barnstead for decades until 2003 when it shut down because of the foreign logging competition.

Gregory True, executive vice-president and chief operations officer of Lakes Region Pellet, has been working diligently around the clock, getting everything in order for the company's anticipated opening sometime this summer.

"We plan to be in operation sometime in June," True said.

Thinking "green" is something that the Obama Administration has encouraged. Wood pellets are made from completely organic matter and wood pellet stoves are becoming vastly more popular. As technology advances, the cost of wood pellet heat systems and other alternative energy sources are expected to decrease.
"This is taking advantage of the energy crisis right now," said True. "This country needs to be self-sufficient from other countries' oil. If I didn't have to buy another gallon of oil ... I'd be happy."

The company has designed a two-phase process in becoming fully operational. The first phase will have the company produce four tons of wood pellets per hour, with orders expected to be filled and initial sales completed by June.

"We will begin phase two as soon as phase one is complete," said True. "We're anticipating to complete phase one in October, but if we complete it before, we will begin phase two sooner."

In phase two, LRP plans to purchase additional machinery that will increase wood pellet production up to 10 tons per hour, an increase of 150 percent, which also would support the creation of 25 new jobs.

The state will benefit from LRP's business enterprise and business profit taxes. The town of Barnstead will likely collect additional revenues from property taxes and perhaps increase consumer spending in local businesses.

"Hopefully this will be good for the economy and good for the state," True said.

A large percentage of the raw materials used to produce the wood pellets will come from within a 50-mile radius of the property, providing additional benefits to area businesses and property owners.

"The overall economic vitality will increase," said Jennifer Boulanger, executive director at the BCEDC. "The plan calls for an unutilized facility to be redeveloped that will create jobs as well as bring money in to the local economy by attracting people to local businesses."

Boulanger said that, as the loan to LRP is repaid, it will re-capitalize the agency's revolving load fund which will benefit the BCEDC by being able to loan the money to other businesses.

"This is wonderful for the town and county to show that are opportunities out there," Boulanger said.

Once fully operational, LRP will be one of the two major producers of wood pellets in New Hampshire, followed by New England Wood Pellets in Jaffrey.

Additional Information

Web Site: http://www.citizen.com

Category: Forestry>Wood Pellets

Region: New Hampshire

Ad Running: 5/2/2009-6/1/2011

Ad Posted: 5/2/2009 11:32:36 AM

Ad Viewed: 1095 times

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