Project expected to create up to 83 full-time jobs in Millinocket
AUGUSTA — At their March 20 meeting, the board of directors of the Finance Authority of Maine approved state new markets tax credit financing to benefit EME Biofuels, LLC., a subsidiary of Castlerock Biofuels, LLC. The company plans to operate a renewable fuel oil facility at One North, the industrial park located at the former Great Northern Paper mill site in Millinocket. FAME also approved tax-exempt bond financing up to $160 million for the project.
EME Biofuels, LLC is planning to construct an approximately 150,000 square-foot biomass-to-biofuels facility on approximately 30 acres at the former Millinocket paper mill site. The plant will utilize forest residuals, specifically “slash”, a byproduct of commercial timber harvesting, as feedstock for the production of up to 20 million gallons annually of Fast Pyrolysis Bio-Oil, marketed as RFO®. This renewable fuel can be used as a sustainable replacement for heating oil and as a biocrude feedstock in the production of renewable gasoline and diesel through co-processing. Once fully operational, the project is expected to create up to 83 full-time jobs at the facility. An additional 150 jobs are anticipated during the construction phase, along with approximately 92 positions in the forestry and transportation supply chains, supporting feedstock procurement and product distribution.
FAME approved the issuance of tax credit certificates related to $746,123.56 in investments through the Maine New Markets Capital Investment Program to assist EME Biofuels, LLC. The certificates authorize the issuance by the state of approximately $291,000 in tax credits through the program. FAME administers the Maine New Markets Capital Investment Program in cooperation with Maine Revenue Services. The program is designed to attract investment in economically distressed areas of the state. It allows eligible investors to claim tax credits against state taxes in amounts up to 39 percent of a project’s total cost. The maximum aggregate amount of tax credit investment authority is set forth at $250 million, which equates to approximately $100 million of tax credits, of which after today approximately $0 in credits remain in the program.
The board also approved tax-exempt bond financing up to $160 million for the project. FAME’s Revenue Obligations Securities Program provides tax-exempt bond financing to eligible borrowers without any recourse or obligation on the part of the state. FAME acts as a conduit for borrowers in order to allow them to access favorable interest rates and to help stimulate the economy and create and retain Maine jobs. Such bonding, commonly referred to as “conduit bonds” due to their relatively risk-free, pass-through nature, are authorized by the Internal Revenue Code in order to stimulate economic development in certain targeted industries such as manufacturing and solid waste disposal facilities.
“We are pleased to support EME Biofuels with their plans to construct the plant at the Millinocket site,” stated Renee Ouellette, chair of the FAME Board. “The project will target the renewable heating energy market for large-scale industrial and commercial customers with carbon reduction goals.”
“We very much appreciate FAME’s support for this exciting project,” said Ryan Allen, VP of finance for Castlerock Biofuels. “The biocrude and biofuel expected to be produced can be used as renewable fuel for heating and cooling, as well as a feedstock for co-processing in petroleum refineries in the production of renewable gasoline and diesel. The project will enable us to eventually offer discounted fuel prices with green savings benefits for our customers.”
The Finance Authority of Maine is a quasi-independent state agency whose mission is to enrich business and educational outcomes through relevant, timely financial support to Maine’s people. FAME’s vision is a Maine where all people have access to improved economic outcomes through business growth and education attainment. To learn more about FAME, please visit www.famemaine.com.
Castlerock Biofuels, LLC is committed to becoming a national leader in renewable fuel production, with plans to develop a network of RTP facilities across the United States. By leveraging non-food source, cellulosic biomass, Castlerock Biofuels will set the standard for low-carbon renewable fuels that support American energy independence and foster economic and environmental progress. For more information, please visit: https://www.castlerockbiofuels.com.
