MANCELONA -- It's all coming together for a new $140 million biomass power plant in Mancelona.
Land deals are in the works and officials hope to break ground on the facility sometime this fall. It could be a needed financial boost for Mancelona, where hundreds of jobs were lost last year when the Dura Automotive plant closed.
"I think it's a win-win," said Mike Biehl, Mancelona Township clerk. "It will employ about 30 people at the site itself, plus all the supporting businesses, like the loggers and truckers."
Traverse City-based Jordan Exploration Company, in partnership with Tira Vento LLC, of Traverse City, intends to buy about 130 acres for the plant, a facility that will burn wood scraps from logging operations to generate electricity.
About 64 acres will be purchased from Mancelona Township for $58,000; about 65 acres had been purchased from the Community Resource Development Association, a nonprofit that advocates for Mancelona area development.
"There was some talk that $58,000 might not be enough for that property, but when you consider the advantages we will get down the road, it's worth it," Biehl said.
The purchase price was set by an independent appraiser; the land is at the southeast corner of U.S. 131 and Elder Road, east of the Tar Lake brownfield site.
"If we can get it built, that's where it will go," said Ben Brower, the company's project manager.
The company will be called Mancelona Renewable Energy, a change from the previous planned name of Rapid River Renewable Energy, from when the plant was expected to be built several miles south in Kalkaska County's Rapid River Township.
The Michigan Department of Environmental Quality is reviewing the project's air quality permit application. The company's plans must meet both state and federal regulations for air quality, said Paul Schleusener, DEQ senior engineer specialist.
The DEQ will take at least a couple of months to review the application, including a public comment period and a possible public hearing, Schleusener said.
Company officials are working to establish a contract with a utility company to sell the electricity they will generate. They will seek investors once a utility contract is in place, Brower said.
The plant is expected to cost $140 million to construct over two years, he said.
Officials hope for other businesses to set up shop nearby the plant, including possible lumber mills, commercial greenhouses, oil field services and carbon dioxide sequestration facilities, among others. Those industries can benefit from close proximity to the plant and its available steam, heat and carbon dioxide emissions, plus create more local jobs, officials said.
