ATHENS, Maine — In a deal that would trigger about $12 million in state tax credits, a Missouri-based investment firm plans to put more than $30 million into a biomass plant connected to the Maine Woods Pellet Co.
The Finance Authority of Maine approved the investment from CCG Community Partners LLC in Athens Energy, a sister company of the adjacent pellet plant, during a meeting June 17.
Paul Hoffman, managing director of investment group CCG Community Partners LLC, said in an email to the Bangor Daily News that his company expects to close on financing for the Athens Energy biomass project in August.
“We expect that it will take about 18 months to fully install and integrate the biomass facility,” Hoffman wrote.
Hoffman said the FAME financing is an “instrumental” component of the project.
The company told the FAME board that it plans to retain or hire more than 200 people in the Somerset County area as a result of its investment.
The finance authority said CCG will invest the money through three subsidiaries, one of which was approved to receive tax credits for a $10 million investment in the Millinocket-based Thermogen Industries, which wants to make pellets at that location.
The company has since rescinded that investment. Earlier this month, a Maine-based entity qualified to allocate tax credits through the federal and state New Markets Tax Credit program also decided to revoke its investment of at least $20 million in the Thermogen project.
CCG in 2012 received approval for $41 million in total tax credit eligible investments.
The Athens investment makes up $30.3 million of its tax credit allocation under the state’s New Markets Tax Credit program, which aims to lower the risk of investment in rural and economically depressed areas.
The state tax credits of $12.1 million for CCG will be issued over seven years after the firm makes the investments, which are to support construction and shipping of a biomass electricity generator and possible expansions of the adjacent wood pellet facility.