Serving Gogebic, Iron and Ontonagon Counties
Serving Gogebic, Iron and Ontonagon Counties
By JAN TUCKER
ONTONAGON, Mich. — Ontonagon has been selected as one of two initial sites in the U.S. for the construction of an advanced biofuels plant. SynSel Energy, Inc., is partnering with a U.S.-based financier and Lost Bowl Development, LLC, to develop the $300 million biorefinery at the site of the closed Smurfit-Stone Paper Mill in Ontonagon. A second identical $300 million plant will be developed by SynSel in Lumberton, Miss. Each site is expected to produce about 250 direct and indirect jobs.
The Smurfit-Stone Paper Mill closed in 2010 and was just one more setback for Ontonagon County after the closure of the White Pine Mine and Lake Shore shipyard. As a result Ontonagon County has consistently had one of the highest unemployment rates in the state.
The SynSel biorefinery is a huge step in reversing the unemployment trends in Ontonagon County and the Upper Peninsula in general.
“We are honored to be partnering with SynSel and their financier to help revitalize this county with good paying jobs insulated against the boom and bust cycles of the legacy mining industry,” said Pat Tucker, president of Lost Bowl Development — the company that owns the Smurfit-Stone Paper Mill site.
SynTel Energy, of Elmhurst, Ill., is a developer and owner/operator of biorefineries in the U.S. and Canada. They intend to use the abundant waste wood generated in the U.P. as the feedstock to produce its renewable biofuel.
Michigan Technological University found that biofuels produced from wood waste and forest residue can reduce carbon dioxide by up to 95 percent compared to traditional fossil fuels.
“The fuel produced by SynSel can be drop-in ready and is able to directly displace petroleum-based fuels without engine modification or degradation in performance,” Tucker said. “We will be producing a combination of synthetic gasoline, diesel and aviation fuel for sale in the commodity markets and to the Department of Defense.”
The Daily Globe learned that construction funding for both plants has been committed by SynSel’s financier and business partner. The site was approved for funding and construction in September 2015, after a visit by the exclusive licensor of the synthetic fuel process — a major international gas and oil company. SynSel is currently securing each plant’s construction project deposit, which is required to release the construction funds
“We are nearing final discussions with a number of investors for the project deposit, and we anticipate this decision to be finalized over the next several months,” Tucker said.
The Daily Globe also learned a second phase of the project will host an energy park, where it is estimated that an additional 200 jobs will be created.
“The biorefinery will serve as the development anchor, and other businesses will be able to take advantage of process waste byproducts, like heat, to decrease operational expenses. It becomes a win-win-win situation for the business partners, the community and us,” Tucker said.
SynSel CEO Tim Tawoda was contacted but, declined comment due to confidentiality agreements that precludes public discussions on the two projects.
“We are eager to engage with state, county and community leaders and stakeholders at the appropriate time in the near future,” Tawoda said.
