Governor announces biomass facility in Southern Oregon

January 10, 2007

Gov. Ted Kulongoski today announced that DG Energy will build a biomass power plant in Lakeview, marking the first new biomass facility in Oregon since 1992.

Lakeview is near the California border on Interstate 395.

“Using biomass from overstocked forests, this innovative project will produce electricity while helping restore forest health, reduce fire risks, and create jobs,” Kulongoski said. “This project serves as a model for collaboration between industry, conservationists and state government in enhancing forest health, developing renewable energy and creating jobs.”

DG Energy will invest $20 million in the facility and it will produce nearly 100,000 megawatt-hours of renewable energy to the regional Oregon grid annually. In addition, the facility will supply steam to the Fremont Sawmill, owned by the Collins Companies of Portland. Permits for the plant will be filed in mid-spring and the facility is expected to be operational in 2008.

Key partners include: Oregon State University, Portland State University, The Collins Companies, Oregon Economic and Community Development Department, Oregon Department of Forestry, United States Forest Service, Friends of the Winema/Fremont, Bureau of Land Management, Oregon Department of Fish and Wildlife, The Wilderness Society, Oregon Natural Resource Council and Defenders of Wildlife. The Lake County Resources Initiative is the project sponsor.

The plant will create local jobs in harvesting and hauling the once-unwanted biomass. The salvaged materials that are suitable for solid wood products will be milled, creating more jobs.

Additional project benefits will include enhanced water resources, fish and wildlife habitat and renewable energy from a resource that was once a threat to forest health and potentially reduced costs in fire fighting.

“The whole community is pleased that DG Energy is going to build the biomass plant in Lakeview,” said Jim Walls, director of Lake County Resources Initiative. “It will mean approximately 15 jobs at the plant and another 70 in the woods and that is considerable for a community of 2,600.”