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Klamath Falls Bioenergy backs out of biomass plant

Developer Klamath Falls Bioenergy has withdrawn its application to build a biomass-fired power plant near Klamath Falls, Oregon, Associated Press reports.

The company said it would not have been able to meet its construction deadline of the end of 2013 due to delays in obtaining a state siting permit. This deadline was set by federal economic stimulus legislation, which was expected to fund 30% of the project's cost.

The renewable energy plant would have burned woodchips to generate power for around 35,000 homes. Local residents were displeased with the potential development and had organised to protest against it.

Local economic development leader Trey Senn was reported to have said that the withdrawal means Iberdrola Renewables' proposed biomass project can now get underway.