Liberty Diversified urges funding for feasibility study to replace steam supply after nearby plant closure

Jim Morgan, president and chief executive officer of Liberty Diversified International, told the House Energy Finance and Policy Committee on April 9 that his company needs state support to study alternatives for steam supply to its Becker recycled-paper mill following the scheduled closure of the nearby generation unit that supplies steam.

"We recycle about 1,000 tons a day of recycled paper," Morgan said, describing the mill's operations and a long-standing closed-loop arrangement in which steam is provided, condensed and returned to the generator. He said the impending closure of the supplying plant (cited in testimony as closing December 31, 2030) leaves Liberty with a multi-year window to evaluate replacement options and risks to continued local production.

Morgan told the committee the study would evaluate technologies including anaerobic digestion, biomass combustion and combinations of processes, and is intended to answer basic feasibility questions: how much feedstock would be available, what the fuel costs and handling requirements would be, and whether a given technology could reliably produce steam and power. "We're asking for some funds to do the study and demonstrate which of these processes is capable," he said.

Committee members pressed for specifics. Representative Collins said she supported anaerobic digestion in general but wanted to know whether the committee should fund a study rather than direct dollars to construction. Collins cited past projects'and an apparent figure discussed during questioning of roughly three-quarters of a million dollars'and Morgan responded that a feasibility study is critical to determine whether commitments of feedstock (he referenced a 75,000-ton-per-year figure cited from another project) are reachable and to size and price the project accurately.

On feedstock, Morgan said the mill's own corrugated-container stream would be a first priority, followed by food waste, agricultural biomass and potentially construction and demolition waste; he also noted the mill consumes a large steady volume of corrugated material and that Minnesota collection programs capture a high percentage of corrugated boxes. He said the company currently employs about 150 people at the Becker facility and characterized the forthcoming supply change as a regional issue affecting other Minnesota packaging facilities.

After testimony and questioning, Representative Eklund said he would lay the bill over for further consideration. House File 4770, as amended with the committee'adopted A1 technical amendment, was laid over by the committee.

The committee received written testimony in support of the bill; no final action or funding decision was taken at this meeting. The layover means further committee work will precede any vote on authorizing study funds or construction support.