SMART energy move lauded by city
Wednesday, May 14, 2008
HAMILTON — City utility officials say they aren't concerned about SMART Papers investing $30 million to install a "green" or environmentally friendly energy facility to power its Hamilton plant and, eventually, sell excess power.
Deputy City Manager Charles Young said Hamilton is a closed electric system and Ohio law would prevent SMART from selling to its customers. But he said the city would entertain an offer to purchase excess electricity from SMART if one was made.
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"They're doing this as a market initiative. They will be indifferent to who they sell to as long as they get a market price," Young said.
SMART Papers announced on Monday, May 12, their plan to produce its own electricity using biomass fuel produced from yard waste.
SMART Papers President Dan Maheu said the company has considered the idea since early this decade, but it only became plausible in 2007. Still, the company kept the idea under wraps in case the planning didn't work out.
"We believe in not announcing something until you are ready to go with it all the way. We kept it under our hats until we were ready to announce," Maheu said.
All the results of the investment are not yet known, but it's unlikely it will directly yield any tax dollars for the city since it's a green energy investment, said city Economic Development Director Tim Bigler, who added it is a good assurance that the 550 jobs at the company are safe despite a potentially sagging economy. Typically, "green" investments which help the environment get tax breaks.
Gerald Flick, an administrative specialist for the city's constructive services division, said that SMART has been approved for demolition permits to begin site work and has a permit pending to build the foundation of the building. If the permit application is correct, it should be approved by Friday, he said.
Flick said SMART had not submitted any other permit applications with the city yet for other stages of construction. SMART officials have said they hope to have the project complete in early 2009.
Staff Writer Jessica Lander-Heffner contributed to this report.
