About 2,500 jobs statewide, with a number of those in Washington County, will be affected by the closure of the two Covanta Energy biomass power plants located in Jonesboro and West Enfield, according to the Professional Logging Contractors of Maine (PLC). The two plants employ 44 people, with 20 of those jobs located at the Jonesboro site.
     National trends in lower oil and natural gas prices, as well as changes in renewable energy standards that are causing the biomass power industry to contract, are being felt in Maine as well. The recent news that Covanta Energy's two biomass plants will be taken offline at the end of March will take a bite out of the economic engine created by the plants' operations, including the logging industries that utilize biomass collection and sales as a part of their overall economic strategy and forestry maintenance practices.
      PLC Executive Director Dana Doran states in a release, "The shutdown of the two Covanta plants will have an immediate and direct effect on a large percentage of Maine loggers. Job losses as a result of the closures will be devastating for some logging companies, and the effects will be worse coming on the heels of paper mill closures in 2015 that have already placed strains on the industry by limiting markets for wood fiber."
     After the two Covanta plants are taken offline, there will be only four Maine biomass power plants still in operation out of a total of 11 that operated in the past. The remaining four, owned by ReEnergy, are facing an uncertain future as well, with anticipated changes to the Connecticut Renewable Portfolio standards by 2017.
     James Regan, director of communications and media with Covanta, says, "Unfortunately, this happens with some frequency in the biomass industry when energy prices are not sufficient to cover the costs of operation and fuel supply. We have experienced similar situations in the past and resumed operations when the economics improved. We will continue to evaluate the future of the facilities." He adds, "We did get a renewable energy credit in Massachusetts, but as of January 1, 2016, they implemented standards that stand‑alone plants can't meet."
     Carrie Annand of Biomass Power Associates explains that the new standards require that the waste heat generated by biomass power plants be used. The plant "would need a client nearby that could utilize it, such as a factory or a hospital," something with large square footage that would need a lot of heat, she says. "In Maine it's not practical or possible to retrofit biomass plants to meet those standards." She points to the fact that, like the Jonesboro and West Enfield plants, just about all the Maine plants are in rural locations without nearby facilities to utilize waste heat.
     Each biomass plant generates around five jobs per megawatt of electricity produced. The Jonesboro plant was producing 24.5 megawatts at full capacity with 20 full‑time employees, says Regan. It operated around the clock and processed about 550 dry tons of biomass material per day. In 2009, after the plants had been purchased by Covanta, the former manager reported that the plant was using 250,000 green tons of biomass a year and had 21 employees with an annual $1 million in payroll and benefits. Regan was not able to discuss current payroll impacts of the closure, but did say that the company did not anticipate its status as a significant property taxpayer to change.
     "Biomass is really important," explains Regan. "It contributes to forestry health and safety." The wood waste from harvesting trees for other purposes, such as lumber, pulp and pellet manufacture, is gathered up, chipped and used for energy production. "It complements solar and wind and also prevents wood waste from going into the landfill and creating methane." Annand elaborates, "With the biomass market in Maine we're able to extend forestry products by 30% because of materials being used that wouldn't be otherwise." In addition, while forest fires aren't usually a significant problem in Maine, in California, where a number of plants are closing, biomass production has played a role in preventing forest fires during a years‑long drought.
     Biomass power plants are part of the state's overall renewable energy portfolio. According to the Biomass Power Association, biomass is responsible for 25% of Maine's overall power supply and represents 60% of the state's renewable portfolio. Wood accounts for almost one‑third of New England's entire renewable supply, with Maine supplying a significant amount to the region.
     "While this latest news is another challenge for Maine's logging industry, the PLC and loggers across the state will do all we can to help and to make the best of a tough situation," Doran says. "Workers at the affected plants have our support and sympathy, and we stand with them and our business partners in the biomass industry in calling for state government to act now to preserve the biomass industry before it is lost."