Several Maine loggers have yet to be paid by Stored Solar, though others have received money to cover outstanding balances. In October 2016 Stored Solar purchased idled Covanta plants in both Jonesboro and West Enfield, hoping to sell not only electricity generated through burning wood but also waste products such as ash, excess heat and carbon dioxide. Maine logging firms began delivering biomass fuel to the plants, but some reported that they had not been getting paid.
"A couple filed lawsuits," says Dana Doran, executive director for the Professional Logging Contractors of Maine. "There has been some progress made, considerable progress to some contractors, but not all," says Doran, estimating Stored Solar owed about a half dozen Maine loggers an estimated $600,000 as of August. Now, Doran estimates, about $400,000 remains outstanding. "Not a good deal has changed," he says. "Some [bills] have been paid, but the majority are still outstanding."
Guptill's Logging of East Machias and Tide Mill Farm in Edmunds have both been paid, according to Doran. Payments owed to George Moon of Hancock, Pleasant River Lumber in Ellsworth and W.T. Gardner in Lincoln remain outstanding.
A sixth company, Ashley & Harmon Logging in East Machias, was close to having its account settled, Doran says. Kathy Harmon, the firm's bookkeeper, says Stored Solar has just "settled up" with her company, which began supplying wood chips in April. She attributed the lag in payment to communication. "I think maybe... we weren't a squeaky enough wheel in the beginning," she says, adding the firm won't wait quietly for payments in the future.
"We actually have been advised to proceed with caution," she says. However, she says Bill Harrington, U.S. director of the Paris‑based Capergy, parent company of Stored Solar, has been very helpful. "He has returned every phone call that I have made," she says. "Once I got them aware, they did pay."
Moon is still waiting for $17,000 owed to his logging company. Noting those who have been paid had not filed lawsuits, he said he believes he didn't get paid because he did. Moon felt forced to file suit because, he says, "I can't afford to lose that kind of money," adding that Stored Solar owed him as much as $50,000 in August. "They paid a little at a time," he says.
Stored Solar officials deny claims that lawsuits had been filed. "There has never been a lawsuit with George Moon of Hancock," writes Fahim Samaha, Stored Solar owner, in an e-mail. "Some lobbyists and newspapers circulate incorrect information."
Harmon says Ashley & Harmon Logging is continuing to ship biomass to the Stored Solar Jonesboro plant. She expects to be paid next week for this week's shipment. "We want the Jonesboro plant. We want it there," she says. "This is Washington County. We need this here."
Lyle Guptill of Guptill's Logging says he experienced no real problems collecting money from Stored Solar. "They owed me some money there for a little while, but they paid up," he says. He declines to say how much, describing the figure only as "a little bit."
Although Harmon also declines to say how much Stored Solar owed her company, she says it was enough to be a problem for the firm. "It's hard for us to absorb the kind of money that was owed," she says.
Doran says it is especially difficult for small logging companies to absorb losses because they must invest large sums into land and equipment. "We want businesses here in Maine that are here to invest in Maine and pay their bills," he says.
Moon says he hauled a load of biomass two and a half hours to Sappi Global in Skowhegan rather than taking it to Stored Solar, even though the latter is considerably closer. "They pay," he says of Sappi, adding that he had to borrow money to cover the shortfall when Stored Solar didn't pay.
Harrington says purchasing, upgrading and developing plans for the two plants has required considerable investment. For example, a $40 load of biomass will produce approximately $30 worth of electricity.
Attracting aquaculture, agriculture and other co‑hosts is what will enable these plants to be "self‑sustaining," says Harrington. "It will take time for these assets to be transformed into energy parks, and attracting new businesses to Maine requires community and state‑level support."
In addition, because of Jonesboro's location on the grid, Emera charges additional fees for "wheeling" the power to the transmission system. Wood supply in Washington County also is increasing in cost.
"Even with these challenges, we are currently sourcing for an additional 10‑15 people for the Jonesboro plant and are working closely with local loggers to optimize and sustain the wood supply chain," Harrington says. "We need community support in Jonesboro to transition these plants into something we can all be proud that we helped to create together."
At a public meeting November 20, Harrington said Stored Solar had paid its outstanding real estate taxes to the Town of Jonesboro but not the property taxes because the firm was disputing the amount. Town Clerk Wendy Schoppee confirms that Stored Solar paid approximately $10,000 in real estate taxes in October. It still owes about $85,000 in property taxes, which covers taxes on the building and equipment. "They're trying to fight the value that we've got set on it," she says.
Harrington says the two plants Stored Solar owns are identical. However, the $5.8 million assessed value of the Jonesboro plant is 15 times that of the West Enfield plant, which is assessed at only $391,000.
|