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State gives Lufkin $750,000 for biomass plant logistics

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Posted: 07/28/2010
Author: LARISSA GRAHAM/The Lufkin Daily News

The Texas Department of Agriculture on Friday said it will give a $750,000 grant to the city of Lufkin to be used for road, parking, engineering and administrative services for the biomass power plant being built by Aspen Power, LLC, and Angelina Fuels, LLC.

“This grant is designed to help create jobs in Lufkin,” said Ward 1 Councilman Victor Travis. “The road that the money is being used to fund will become a city road. The grant is helping produce jobs for the city of Lufkin.”

Danny Vines, president of Aspen Pipelines LP, said the funding will be used to provide the first 3,000 feet leading to the power plant, along with two scenic overlooks on the property — one providing a view of the plant, the other overlooking the lake. Vines hopes local science classes can take trips to the overlook during lessons on renewable energy. The plant is being constructed off Kurth Drive, near Lufkin’s northwest loop.

“(Aspen Power) has worked closely with the city of Lufkin and the state of Texas to secure grant funding,” Vines said.

The grant utilizes funds from the Texas Capital Fund, which provides more than $10 million for competitive awards each year to boost economic development in small Texas communities.

”This money will change lives in East Texas as it will create quality jobs based on our largest, renewable, natural resource,” Lufkin Mayor Jack Gorden said in a press release provided by the Texas Department of Agriculture. “Green jobs of the future are in Lufkin, Texas, now.”

Vines said he expects the biomass plant, which will convert waste wood into renewable energy, to begin operation in mid-December.

“(Aspen Power) will add about $100 million to the local tax base,” Vines said.

Agriculture Commissioner Todd Staples, a Palestine native, said the award will help enhance economic development in Lufkin.

“This Capital Fund grant will stimulate economic development through employment opportunities and ultimately offer East Texans affordable and renewable electric power — a win-win for everyone ,” said state Rep. Jim McReynolds. “Congratulations go out to our community for obtaining this generous grant from TDA and our Commissioner Todd Staples, a longtime friend to East Texas.”

Larissa Graham’s e-mail address is lgraham@lufkindailynews.com.