Thank you for sharing!

Your article was successfully shared with the contacts you provided.

GRAND RAPIDS, MN-Minnesota Power and Blandin Paper Co. are proposing to build a $200-million energy facility next to Blandin’s paper mill here. The combined heat and power plant will be able to use wood waste for fuel and will meet all steam requirements of the UPM-Kymmene-owned Blandin Paper Co.

In addition, the facility will provide about 225 megawatts of electric generation capacity to help meet the region’s growing power needs.

The combined heat and power (CHP) plant will use new technologies in efficiency and environmental controls. It will be capable of utilizing up to 40% renewable bio-fuel composed mostly of wood waste, and Rapids Power LLC will partner with local producers and government agencies to maximize their use.

Low-sulfur, Powder River Basin coal and natural gas will also be used to fuel the plant.

CHP plants are very efficient and this project design replicates a project under construction in Pietarsaari, Finland, that is the world’slargest bio-fuel circulating fluidized bed boiler.

The plant will fully replace existing energy production facilities at theBlandin Paper mill.

A new company, Rapids Power LLC, will be created to own the facility. Minnesota Power subsidiary Rainy River Energy Corp. will own 71.5% of Rapids Power LLC and Blandin Paper Co. will own 28.5%.

Minnesota Power is a business unit of ALLETE Inc. and Blandin Paper is a subsidiary of UPM-Kymmene of Helsinki, Finland. Raimo Malkki, senior vice president and general manager of Blandin Paper, says the “the new facility will not only modernize our steam supply, but also help sustain our long-term viability and success.”

Rapids Power LLC will likely soon file a Certificate of Need with theMinnesota Public Utilities Commission early next month. The project is contingent on getting Federal and state approvals and permits. Construction would begin in the fall of 2002 and is slated for completion in mid-2005.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information

GlobeSt. NET LEASE Awards 2021Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.