MILLINOCKET (AP) – Katahdin Paper Co. officials are figuring out how much time and money it would take to install a biomass boiler to provide fuel for its paper mill in an effort to lessen its reliance on oil and keep the facility open.

The company announced in late May that it was closing its Millinocket mill because of record oil prices, putting about 208 people out of work.

Company officials said installing a biomass boiler could take less time and cost less money than originally anticipated.

“We’re working very hard to save the mill,” said mill manager Serge Sorokin. “We are letting the process go forward and are looking at the (financial aspects) of the plan very closely. We have a great sense of urgency. Our options will become much clearer in the next few weeks.”

Fraser Papers Inc., which operates Katahdin’s mills in Millinocket and East Millinocket, said high energy costs were a key factor in the decision to close the Millinocket mill effective July 28. The mill uses hundreds of barrels of oil daily to produce steam used in the paper-making process.

The East Millinocket mill, which employs 413 workers, will remain open. It uses a wood-fired biomass boiler to power its papermaking operations.

Company officials told union workers months ago that they dropped plans to convert the Millinocket mill because it could take up to two years and cost $50 million to install a biomass boiler, which would burn wood or other plant matter rather than oil.

Sorokin met behind closed doors at the mill Friday to discuss the issue with U.S. Sens. Susan Collins and Olympia Snowe along with representatives from 13 unions, Town Manager Eugene Conlogue and the Town Council.

For the plan to move forward, the numbers have to add up. The final decision will be in the hands of the mill owner, Brookfield Assets Management of Toronto.

Collins called biomass an established technology that would greatly reduce if not end the mill’s dependence on oil.

“There’s a lot of concern about how long (transition to new energy) would take and what the sources of funding would be,” Collins said.

“We are here to assure that we will use everything at our disposal to help people get through this.”

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Information from: Bangor Daily News, http://www.bangornews.com

AP-ES-06-15-08 1215EDT