EAST MILLINOCKET, Maine — U.S. Sen. Susan Collins emerged from a closed-door meeting with owners of the new Great Northern Paper Co. LLC mill confident that company plans to produce biocoal would result in big dividends for the Katahdin region, she said Thursday.

Collins, R-Maine, reviewed the mill’s papermaking operations, plans to manufacture torrefied wood at the Millinocket mill starting in November, and both mills’ need for a natural gas line proposed by Gov. Paul LePage.

She promised to help the company realize its plans and diversify its products by helping it secure federal funding for the pipeline and its biocoal production.

“One of the things it is important to realize about [GNP parent company] Cate Street Capital is that they are putting in almost all of their own money to make their plans happen,” Collins said. “I think the future of this area is far brighter because of them than it has been in a long time.”

Cate Street subsidiary Thermogen Industries LLC announced on Dec. 1 that it had secured exclusive rights from Scotland-based Rotawave Biocoal to manufacture a type of machine — called the Targeted Intelligent Energy System, or TIES — that makes biocoal intended to replace coal burned at electricity plants, for $20 million.

Thermogen plans to install five to 10 TIES machines in Millinocket starting in November. Creating jobs for 22 to 25 workers directly and dozens of truckers, loggers and other support providers indirectly, the first $35 million TIES machine would supply United Kingdom utilities with biocoal, company officials have said.

Millinocket would be the site of the first of four or five biocoal mills eventually nationwide.

Thermogen has secured several 15-year biocoal contracts with British utilities and begun applying for air-quality permits with several regulatory agencies, Cate Street spokesman Scott Tranchemontagne said Thursday.

Plans for the first biocoal machine in Millinocket are about halfway finished and company officials hope to begin building the machines on-site in early spring, he said.

GNP, meanwhile, has secured papermaking contracts for all of 2012 and is working on filling next year’s calendar, Tranchemontagne said.

While Thermogen’s plans for biocoal production have tight deadlines, no such looming target dates define Great Northern’s plans for the Millinocket mill’s No. 11 paper machine, Tranchemontagne said.

The company is hopeful that market demands will rise enough to make that mill’s revival an immediate possibility, but the mill really needs to replace its oil burners with generators fired by natural gas to make a near-term restart feasible, Tranchemontagne said.

The natural gas line won’t be installed for at least two years, state officials have said.

Collins had been told that a biomass boiler would make a quick restart workable, but plunging natural-gas prices make the pipeline the company’s best energy option, she said.

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74 Comments

  1. Bright for who? The state gave them a set tax amount for 10 years. TEN YEARS that we can’t raise taxes. We were told last night at the meeting that they can’t legally devalue the mill and raise the mil rate for the town. Our state and selectmen sold us down the river.

     Any raises over the next 10 years = budget cuts elsewhere. Any increase in electricity, oil, health insurance, ANYTHING = budget cuts from other places to make those increases up. We can’t even tax them on anything new they build or bring in there like the torrefied wood project they are talking about.

    Then the selectmen GAVE the state all the land near Dolby that we owned, we are now land locked like Millinocket no place to expand anymore. Oh and we have to figure out what to cut to pay what the state wants us to for upkeep on the Dolby dump. Along with trying to figure out what to cut to pay for the $2.5+ million in repairs the high school needs!

    So how does this brighten the future of the area when we are unable to increase taxes for the whole town for 10years? Doesn’t sound like they were too bright to me.

    1. Bright enough to realize that its a start, and a heck a lot more than some lame tax sucking liberal park.

      1. So it’s ok to be a tax sucking corporation, at the expense of  the taxpayers? It’s corporate welfare at it’s finest. I’d love to get the figures and see just how much each job is costing us.

        Just wait and see how this all plays out in the end. Both towns are going to end up screwed under this town wide tax freeze unless they can change the laws to provide that the rest of the taxpayers get an increase to pay for the increase in the things I listed above (oil elec insurance legal fees etc). Teachers are not going to take a pay decrease to make up the difference in their insurance neither will town employees. Do you think they’ll take a pay cut to pay the increase in oil costs or electrical costs too? The cost of living goes up and our taxes stay the same. It’s going to hurt bad eventually.

          1. This isn’t about the park. I honestly could care less about the park at this point….do I think it’s a good thing. Yes I do. Do I think that a bunch of fools are cutting their nose off to spite their face. Yes I do. That is another thing all together.

            This is about the screwing that we the taxpayers of the state and towns are getting over this deal made with Cate Street. How much do you think oil is going to cost in 10 years? How about insurance? Or electric rates? What about if school boiler craps out in 7 years? Take out a bond and then what? How are you going to raise the money to pay for it? Cut public works or close the dump all but 1 day a week? Can no one around here look forward and see where this is going to lead? How much land did Millinocket turn over to the state? What is their expected contribution to the state for the management of the Dolby land fill? What cuts are the taxpayers there going to make to pay for that?

          2. You’ve traded a long term solution  for a very short term gain.  You all appear to know very little about the private equity firm, Cate Street.  I hope you do well.  I fear the worst. 

          3. We have done our due diligence, for this long-term solution, but as usual we seem to draw fire from those that just want us to leave our land to become a taxpayer supported park.

            And yes, the mills are coming back on-line

          4. You still haven’t answered how the towns are supposed to pay for the increasing costs annually when they can’t raise taxes for 10 years.

          5. I agree, don’t count your chickens until they hatch! Hope the mill(E Mill) will last for at least for five more years!

          6. I’m glad the mills are open and that people have jobs I really am. At some point you have to look at what those jobs are costing us in the long run. Honestly look at what the cost is. Yes the town is getting $750,000 in taxes from the mill when it could have been $50,000. Who knows how much it is going to cost to manage the dolby land fill? Or lose the schools because we can’t raise taxes? Or lose other services, although there aren’t many left to cut as it is. How much are we paying out yearly to keep those jobs here? Does no one get that it is costing us dearly for those jobs? In the end it just may add up to more then we get for them.

          7. By the way you go on, I question your sincerity towards the mill.
            The mills are coming back on line, the products are going to get diverse and this will employ more than you give credit for.

            Quimby land isnt going to happen-
            She has lied to us,
            She has threatened us,
            She has burned down camps,
            She has broken promises to us,
            She has called us fat overweight welfare cases,
            But yet, her followers cant get around why we dont like her…?

            Her park:
            Will remove more jobs than it creates-
            Will directly threatens the only remaining paper mill-
            The few jobs it will create will not even pay a livable wage-
            Will remove to hunting, fishing, atv use, snowmobiles, and
            logging-
            It has been proven that this will become an ongoing cost on the
            backs of the taxpayers-

            Yup, I guess us old fat stupid welfare cases are just tooo stupid to see the benefit…

          8. I’ll believe it when I see it. They had to take out a loan to pay for their taxes this year. I hope it happens I do but explain to me how the towns are going to afford to even keep the status quo for the next 10 years? We can’t raise their taxes, can’t decrease the value of the mill and raise the mil rate for the town, can’t increase their taxes if they add on. Then on the flip side we have to incur rising costs of everything, give no raises to employees, actually decrease their pay because their portion of insurance will have to go up. Do you really think people are going to stay in a job and take a pay cut every year, for 10 years? We are going to lose good teachers and employees. They can and will find jobs else where.

            How is it you can’t see there are going to be serious problems for both towns?

            Again what does Quimby have to do with this? I am good with no park. I’m not losing sleep over it that is for sure if that is what the people want it’s all good.

          9. Giving Cate Street help was step in the right direction, but our future is not guaranteed. Some fail to realize by not doing this and embracing Quimby Land we effectively shut the doors on the small towns around Quimby’s 70,000 acres, and thereby allowing her to expand to her 3.2ml acres.

          10. nobody said anything about embracing Quimby or her land. I still haven’t seen any sort of answer to the question asked, you must be a politician. Deflecting from the question, trying to create confusion throwing Quimby’s name around and never directly acknowledging the problem or giving any sort of solutions to the problem.

            How are the towns going to afford to keep the status quo the next 10 years when they can’t raise taxes to cover basic needs of the town like oil, electric, health insurance costs etc that continue to rise? Let alone cover unexpected costs that come along.

          11. The towns accounting is a mystery to me, especially when it comes to why the school department breaks the purchasing rules when buying things. There is no easy answer or one time fix that will balance the books, but rather a number of projects that all contribute to what hopefully will grow the towns bottom line.

          12. Who said the town can’t raise taxes, its been said they can tax them on new investments. this is all good news for the Katahdin Region.

          13. Last night in East Millinocket this was all discussed. They are locked in for 10 years regardless of what they bring in. The new investments may, MAY, be able to be taxed under personal property tax by the state but will not increase their tax liability to the town. The town can not legally decrease the value of the mill, which is what they thought they could do when this all went down, and increase the mil rate. Keeping their taxes stable and raising everyone else’s is illegal, that is what our selectmen found out last week.

          14. You can’t be serious? They already can’t make payroll! Cheating men on their paychecks! You obviously aren’t a mill worker unless of course you’re that one with a mill job and a union job.

          15. You sound like someone with family inside.
            They can make payroll, but it sounds like someone may be skrewing up paychex.

          16. Well let’s see when there is no check in the bank on payday … in my book that is can’t make payroll.   And don’t even try giving me the lame union excuse that they were closing the books for the end of the year. Their year isn’t up till Sept of  12!

          17. I talk to 3 mill workers and they said no problems with their checks,they get paid every two weeks.you must have a husband in the mill if your so unhappy all the time,maybe he should quit and you can move to paradise,because you are not happy about anything in the Katahdin region.
            I doubt you would be happy anywhere

      2. Your right!  It is a start!  The kamikazes would dig your panache!  Digging your own graves with such flair and smug aplomb!

        1. Blah- Blah- Blah,,,, Our towns will be just fine, and most already can see that.

          After the Medway vote, what will Quimby base her park support,,,, you..?

          In the end, the mills will reopen and Quimby will go down in history as some rich liberal crank..!

          1. Time will certainly tell who’ll  get star billing in “Who’s Who in Mental Health.”   Its early days yet but you do look like a strong contender.

      1. Yea we all know how bright you are:I guess you haven’t learned anything yet ziggy… Can’t even figure out how to not get an oui after how many??? 

        1. That is completely uncalled for and a personal attack on someone who nowhere is this board have I seen him attack you Missy. Shameful and puts you in a worse light than most have you in.

  2. God bless you Senator Collins.
    Area residents are thankful for the efforts to date and look forward to the Millinocket Mill to go online with any type of wood product, or non-wood product.

  3.  Thank you Cate Street and thank you Sen Collins for snatching us from the jaws of federal land ownership through the NPS coercive, expand-at-all-costs tactics.

    1. What on earth does Quimby and her little bit of land have to do with falling prey to the clutches of Cate Street  LLC

    2. What “jaws”  would that be?  Because Quimby’s land is in private hands, it will never become commercial forest land again?  I love how the citizens of Millinocket think that those 70,000 acres are going back into production if Quimby doesn’t get her park.  Keep thinking that way; and, while you’re at it, keep thinking those mills are going to make paper in five years when the largest consumers of wood pellets are a five days journey across “The Pond” by cargo ship. 

      Props to Senator Collins for once again getting her name in the paper. Ask her about issues of foreign policy or the economy and she sounds like an elementary student trying to give his first book report in front of the class.

      1. 70,000 acres………FOR NOW.

        It’s actually 59,000 and change.

        They can’t even get their own acreages right!

      1. Did she ask why the men aren’t being pd  correctly while she was here for her secret meeting? Did she ask why the money stolen from the men in overpayment for that crap they call insurance wasn’t returned with interest? Wage and Hour laws say any mistake on a paycheck not corrected on the next scheduled pay check is due interest.  Did she ask why they broke the so called union contract when they didn’t pay them for 3 weeks?  No she just came for the free lunch!  

        Did she find out a full size machine to make the bio coal has never been built?
        Did she find out they have no way to capture and dispose of the volatile gases emitted from said machne?
        Did she find out that the coal made on the mini model machine has too much carbon and doesn’t meet the standards in England where the Cates people’s buyers are?

        Now that would have made the meeting worth while!

        1. You complain constantly about this company.  No one is required to work there.  If it’s so bad, pull up stakes and move on. 

  4. THE TREES ARE FALLING, THE TREES ARE FALLING. We will finally have both sides of the park dispute in agreemnt. Some will be smilling though and someone will be crying.

    1. mlk I realize you likely graduated from Stearns and your math ability is lacking behind that of a middle schooler anywhere else in the Country. BUT really let me put it in simple terms for you…. THE AGREEMENT YOUR COUNCILMEN, GENE, OUR SELECTMEN, AND CATES SIGNED – YOU CAN’T RAISE THEIR TAXES FOR 10 YRS!!! Regardless if they put in their bio-coal plant. Regardless if they put in 3 new paper machines as expensive as #11! Do you understand ?? If they can’t raise their taxes… guess who’s they can???

      1. Jobs = taxes. More tax dollars means more people sharing the burden. More people sharing the burden means lower taxes for all.  See!!!! I have no problem with math and reasoning skills nor my ability to think outside the box.  We don’t need to raise corporate taxes when the company is trying to get off the ground.  Not every corporation is filthly rich and trying to take advantage of everybody.  You should try to be a bit more open minded and not so critical of people you don’t know.

  5. LePage Rules! Marijuana dispensary’s, Speed Limit boosted to 75  on I95, allowing the big rigs to haul 100,000 lbs. on the interstate. Making fireworks Legal, Finally! Opening Great Northern Paper back up….and there is more. Careful what you do with the Medicare thing LePage…don’t mess that up!

  6. Biocoal is not the answer. Stick to paper, and if you are worried about Quimby you should be more worried about the windsprawl which will require 400 miles of tree clearing and hundreds of miles of new trans. lines,sprayed to prevent tree regrowth. That removes land from the timber supply too.

  7. One more thing…when the net value of the mill goes up….so does the amount that they pay….new machines = dollars…..no machines = no dollars…..Isn’t this fun!!!!

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