Pulp and paper company scraps biomass plans

Pulp and paper firm Port Townsend Paper Corp., based in Washington, US, has abandoned plans to build a $54 million (€39 million) biomass-to-power plant, saying the project was not financially viable.

Had it gone ahead, the plant would have generated 24MW of renewable energy, however the company will not request an extension when its 18 month construction permit expires in June, according to reports.

Company president Roger Hagan explained there were a number of reasons for the decision, including challenges from environmental groups and a strong market for cheap natural gas.