Potential buyer of Katahdin Paper mills in Maine starts $275M biomass project in NH [From the web]

BANGOR, ME, Sept. 12, 2011 (Bangor Daily News) - As they work to close a deal to buy two Katahdin region paper mills, Cate Street Capital investors are starting construction of a $275 million biomass boiler in Berlin, N.H., that will employ about 240 full-time workers and be among the Northeast's most environmentally advanced biomass plants, officials said Friday.

Cate Street continues to work to finish its deal with Brookfield Asset Management, owner of the East Millinocket and Millinocket paper mills, by mid-to-late September. The company signed a tentative agreement on Aug. 30 to buy the mills for an undisclosed price. Part of the deal is the immediate restart of and a $20 million to $25 million investment in the East Millinocket mill.

As that work in Maine continues, Cate Street is set to begin the most active phase of its New Hampshire plans. Due to go online in late 2013, the 75-megawatt boiler will be built by 400 construction workers over two years before 40 full-time workers begin plant operations and another 200 loggers supply it with approximately 750,000 tons of low-grade wood annually, Berlin city officials said.

Bangor Daily News - Possible Katahdin mills investor closes $275M N.H. deal

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