JAFFREY, N.H. (AP) – Capitalizing on a growing market for its alternative fuel, a New Hampshire company has begun building what’s believed to be the largest wood pellet plant in the country in New York state.

New England Wood Pellet of Jaffrey says the plant in Schuyler, N.Y., will produce 100,000 tons of pellets a year, enough to heat 40,000 homes.

The $12 million plant will be near the New York Thruway east of Utica. Plans are to employ 20 people there when production begins next May.

The plant will produce wood pellet fuel from clean wood waste, including sawdust, wood chips, shavings and grindings from wood product plants.

New York state.

“We’re extremely excited about our new location in Schuyler,” said Steve Walker, President and CEO of New England Wood Pellet. “It’s perfectly located to supply homeowners and businesses in Utica, Syracuse and the rest of central New York, where pellet shortages have been severe in recent years.”

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On the Net:

www.pelletheat.com.

AP-ES-10-18-06 2138EDT