Paper mill to pick energy alternative

NEWTON FALLS — Newton Falls Fine Paper could decide within months on how it will rid itself of dependence on oil.

"We're doing due diligence, a thorough analysis of the technology that seems to be most appropriate. We're fairly far along in determining what we want to do," President Dennis R. Bunnell said. "We're not looking at leading-edge technology, although what we're focusing on is not commonplace."

The company has looked at a host of technologies for producing heat and electricity, including ethanol-based systems and cogeneration equipment that could satisfy both energy needs. It also is evaluating a system using pulverized wood made from waste — such as wood chips — created by other industries including forestry.

"You're not burning timber. You're burning what's left over. It's usually left to rot," said Raymond H. Fountain, executive director of the St. Lawrence County Industrial Development Agency, which is helping the paper mill. "We've been talking about it with them since before they opened. They're forward thinking."

Although the price of crude oil has dropped from the historic heights of $147 a barrel reached last year to just above $40 on Monday, there is no guarantee prices won't rise again, Mr. Bunnell said.

With energy playing a critical role in the financial health of the industry, officials said they need to find a strategy to control costs.

"We'd be looking at it as a combination of savings and cost avoidance in the future," he said. "We're looking for a long-time future for Newton Falls."

One additional factor that makes wood energy seem like a smart investment is that the milll owns more than 1,000 acres at its site.

"They have a lot of potential for their own material," Mr. Fountain said.

The pulverized wood system would likely cost the company less than $10 million, including the boiler, Mr. Bunnell said. Options for financing might include bonds, Mr. Fountain said, or the mill might be eligible for federal stimulus money.

Plant officials have already done preliminary work with the Adirondack Park Agency and state Department of Environmental Conservation on necessary permits.

Newton Falls Fine Paper's investment partner, Minas Basin Pulp & Power, Hantsport, Nova Scotia, is on the forefront of various environmental and energy strategies. It produces 100 percent recycled paperboard products and was one of the first mills in Canada to be in full compliance with federal pulp and paper effluent regulations.

Minas Basin also was tapped by Nova Scotia to build a tidal power demonstration and research facility in the Bay of Fundy to test in-stream turbines.

Minas is pursuing other renewable energy projects, including wind power, biomass cogeneration and the reprocessing of plastic waste to diesel fuel.