Advertisement

Jordan Exploration Company, LLC has property in Rapid River and has been trying to get zoning alterations that would support the proposed wood burning plant. But the company has run into obstacles and opposition in Kalkaska County.

"We've been going down the Kalkaska road for so long without getting any approval," Jordan Exploration representative Ben Brower said. "We've been waiting for about six months without hearing anything. We just can't wait forever."

Brower said to build the biomass power plant in Rapid River the county would need to add language to the existing zoning law.

In the meantime, Brower said people in Mancelona approached his company about moving there instead. Mancelona has seen significant job losses this year with the closure of Dura Automotive and Mavrick Metal Stamping. Brower estimates the plant would create 25 to 30 jobs on site, and many more in Michigan.

"The township has been welcoming us with open arms," Brower said. "We haven't made a decision where we're going to go yet, but it's sure nice to have people welcome us and the job opportunities in renewable energy."

The spot being considered for purchase is 140 acres across from Tar Lake. According to commissioner Joe Allen, the company wants to purchase two properties, one is the business park owned by the township and the other owned by CRD.

"Everybody I've talked to is (supportive)," Allen said. "The one nice thing about the 140 acres is it's not in an area that's heavily built up so it's not going to be an eyesore or problem to a neighbor."

The company hopes to establish a renaissance zone, which can only be designated by the state of Michigan. Renaissances zones are free of local and governmental taxes for the businesses within the boundaries, according to the state's Web site. The nearest renaissance zone to Antrim County is the Grand Traverse Common's in Traverse City - the site of the old state hospital.

According to county coordinator/planner Pete Garwood, the state is looking into the possibility of establishing a renaissance zone.

"The state's doing work right now, crunching numbers, to see if it's a good idea for a renaissance zone," Garwood said at the commissioners meeting.

Allen said the general letters of support could help the likelihood of a renaissance zone.

"The Mancelona folks have been willing to help promote that," Brower said of the renaissance zone. "That'd be a huge benefit for us. That would single-handedly tell us where we would bring the plant."

Allen added that Mancelona Township will likely give the company a tax abatement.

The biomass plant would use woodchips to generate electricity, according to Brower. He said the woodchips are burnt to create heat and steam. The steam turns the turbine to create electricity. Though this can be done with many materials, Brower said they are using wood, which is renewable.

"It's going to be waste wood - tops, limbs, bark - most things people don't have use for and is left to rot out in the forest," Brower said.

He added there are five wood-fired power plants up and running in Michigan currently.

But even once Jordan Exploration chooses its location for a new plant, there's still much that needs to happen.

Before the plant is built, the company needs to have a buyer for the electricity they will produce.

"We'd have a purchase agreement in advance that says they'd buy our power for a certain term," Brower said.

He added that the state Legislature passed a new green energy bill this month that forces power companies to buy 10 percent renewable energy by 2013.

Once they have a purchase agreement, Jordan Exploration will need to raise $140 million to build the plant.

The company also needs to secure air quality permits from the Department of Environmental Quality before proceeding.

Hadley Robinson can be reached at hrobinson@michigannewspapers.com or by calling 231-533-8523. Ê