Another $3.3million grant is pending.

RUMFORD – The River Valley Growth Council got some good news about its project to make fuel and other chemicals from the oil produced from waste wood. A $10,000 grant is coming from the state’s Maine Technology Institute.

Rose Bradley, assistant to the RVGC economic developer, said the additional money will be used to evaluate additional opportunities for the proposed River Valley biorefinery. The proposed biorefinery would use wood products through a process known as pyrolysis to produce oils and chemicals that could be used in a variety of products. Taking the process one step further would result in the manufacture of hydrogen.

The newest grant will allow research into even more potential products from the pyrolysis process, as well as result in improved marketing opportunities and the development of appropriate designs.

The RVGC has already received $65,000 from the state’s Department of Economic and Community Development that is being used to pay for a feasibility study for the pyrolysis project.

Both grants are being used for research by the University of Maine, and for technical work by the RVGC’s partner in the project, Enerkem, based in Colorado and the Province of Quebec.

A federal $3.3 million Department of the Energy grant is pending. Bradley said she should know whether the RVGC will advance to the next step in the funding process by the end of the month. If received, it would finance a demonstration pyrolysis plant, targeted for a 2006 completion date. Forty production jobs would be created, along with about 20 forestry and transportation jobs.

If all goes well, an actual production facility could be up and running a few years after the 2006 date, bringing with it more than 100 new jobs for the area.

“It’s excellent news. It helps us make sure the project goes forward,” said Bradley.

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