The U.S. Dept. of Energy has named the small Lake Huron town of Alpena as one of the 19 communities where the department’s Biorefinery Assistance Program will fund pilot projects to develop new fuels from biomass.
American Process, an Atlanta based company, was awarded $17.9 million to develop a plant that will make ethanol and potassium acetate — a deicer — from wood waste generated by local hardboard company Decorative Panels International.
“This grant, in support of one of our Centers of Energy Excellence, will bring 160 jobs to the Alpena area and strengthen Michigan’s efforts to be a leader in the development of the next generation of advanced biofuels,” Governor Jennifer Granholm said in a statement.
Mlive reports that the project has already received substantial financial support from the state.
The state in June approved a 28.6-acre site in the city as a tax-exempt Renewable Energy Renaissance Zone for 15 years effective Jan. 1, 2010. The Alpena Prototype Biorefinery was to be a partnership between American Process and San Antonio-based Valero Energy Corp.
Its November 2008 designation as a Center of Energy Excellence gives the project $4 million.