[NEWS] Burney, California Biomass Power Facility to Shut Down
– by David Benda, August 12, 2016, Reading Record Searchlight
Burney Forest Power, a biomass plant in eastern Shasta County with about 25 employees, has given notice that it will cease operations around the end of September.
And the plant’s closure could be felt beyond the doors of its operation.
Shasta Green sells Burney Forest Power its wood waste and then purchases the steam Burney Forest Power generates. The steam is used in Shasta Green’s kiln. Shasta Green and Burney Forest Power also operate on the same property on Highway 299 in Burney.
Danny Osborne, vice president and sales manager at Shasta Green, said they recently received a 60 days’ notice from Burney Forest Power that stated the biomass plant would stop supplying Shasta Green with steam.
Burney Forest Power combusts wood waste to produce electricity and has a 30-year contract with Pacific Gas & Electric Co. that ends in 2020. Burney Forest Power and PG&E negotiated to amend the contract last year, which gave Burney Forest Power more money for its electricity.
But the amendment expires Aug. 31, at which time the contract reverts back to the original terms.
Osborne said he’s been told by Burney Forest Power that it can’t operate under the terms of the original contract because the rate PG&E will pay isn’t enough to keep the doors open.