Home » $22M Biomass Energy Deal Keeps 340 on job at Lubrizon, Zeon

$22M Biomass Energy Deal Keeps 340 on job at Lubrizon, Zeon

By wmadministrator

Wood pellets are a typical biomass fuel.

A three-way partnership involving the state’s first active-energy-services biomass project will result in $22 million in investment and 14 new jobs to Louisville. The Lubrizol Corp., Zeon Chemicals and Recast Energy partnership will also keep 340 Kentucky workers on the job.

Lubrizol and Zeon operate adjacent facilities in west Louisville and share utilities, but in 2009 their provider announced plans to close, which would leave them without the steam, de-ionized water, wastewater treatment and compressed air needed to continue production.

Working with state and local officials, Lubrizol and Zeon were able to develop a contract with Richmond, Va.-based Recast Energy, which is in the process of retrofitting a coal-fired boiler to consume clean biomass. It is expected to be operational the second quarter of 2012.

The resulting new biomass fuel supply chain is expected to add another 12 to 20 full-time job through third-party suppliers.

Recast Energy’s entrance to the market brings the first active energy services biomass project to Kentucky. Recast Energy converts cost-competitive biomass, or organic matter, into green electricity and thermal steam energy for industrial customers.

Kentucky Economic Development Finance Authority preliminarily approved Lubrizol and Zeon for tax incentives up to $1.75 million each through the Kentucky Reinvestment Act.