Oct. 16--CHARLESTON, W.Va. -- Charleston entrepreneur Thomas Loehr announced plans to build a $150 million plant in Mingo County that would convert wood waste to electricity.

Loehr's plan came to light Thursday when he asked the West Virginia Economic Development Authority for preliminary approval to issue up to $100 million in tax-free bonds to help finance the project. The authority's members unanimously approved the request.

The plant would be built in the Harless Wood Products Industrial Park. It would use more than 400,000 tons of wood waste per year to generate 28 megawatts of electricity. That's enough power to supply about 20,000 homes.

Loehr said there are two critical pieces of the project that remain to be done: One is to contract for a supply of fuel and the second is to sign a power purchase agreement. He said talks are well along on both.

Loehr already has a project going in Charleston. He is responsible for a project at the Charleston landfill meant to turn waste methane into power. He has a similar project under way in Greenbrier County.

The Mingo power plant would be a carbon-neutral project because it would burn wood waste that would otherwise decompose, Loehr told the development authority. Loehr said he hopes to issue bonds next July. The project is expected to employ about 50 construction workers and 40 permanent workers. Loehr said he hopes the plant would begin producing electricity by the third quarter of 2011.

Mike Whitt, executive director of the Mingo County Redevelopment Authority, said in a prepared statement, "This is exciting news. We've been working on alternative energy projects, and hopefully this one will come to fruition. We appreciate Mr. Loehr's commitment to develop alternative energy projects and, most importantly, for choosing Mingo County as a site for this facility."

Loehr created a limited liability company, American Clean Energy LLC, in June to develop the project. ET Energy of Atlanta, Ga., is the lead engineering and design firm for the plant. Raymond James & Associates Inc. is serving as project adviser and debt placement agent. The law firm Steptoe & Johnson will act as bond counsel. The firm of Bailey & Glasser is general counsel for the project.

The Harless Wood Products Industrial Park is on a 680-acre mountaintop removal coal mine site.

Loehr's proposed power plant isn't the park's first "green" energy project. Mohawk Flooring's Unlin Division burns wood waste and sawdust to generate heat for its dry kilns in the park. The system was installed about a decade ago, when International Industries, founded by entrepreneur Buck Harless, was involved in several wood products companies at the park.

Whitt has been working for years on projects to fill the park. Hopes were raised in 2006 when Rentech Inc. of Colorado announced plans to build a $1 billion coal-to-liquids plant there. Whitt said Thursday that Rentech couldn't obtain financing and the project is no longer active.

Gov. Joe Manchin and Adam Victor, president of New York City-based TransGas, announced in December 2008 that TransGas plans to build a $3 billion coal-to-liquids plant at the park. The TransGas project is in the permitting process. "We're still working on it," Whitt said.

Contact writer George Hohmann at busin...@dailymail.com">business@dailymail.com or 304-348-4836.

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