A company that owns biomass electricity plants in West Enfield and Jonesboro and had access to millions in state subsidies to help it stay afloat has filed for bankruptcy, stating it owes $17.8 million to creditors including an energy market investor, the states of Maine and New Hampshire, and Maine loggers.
Stored Solar LLC and all but one of its subsidiaries filed for Chapter 11 bankruptcy protection in September in U.S. Bankruptcy Court in Bangor. Chapter 11 of the bankruptcy code provides a way for companies to reorganize their operations.
The filing comes six years after Maine lawmakers passed a $13 million bailout of the state’s biomass industry, which uses waste wood to produce electricity, with the aim of preserving electric plants and logging jobs.
Stored Solar was one of two companies to benefit from the subsidy package, which used taxpayer dollars to guarantee biomass producers above-market prices for their electricity. But the company, which bought the West Enfield and Jonesboro plants in 2016 after previous owner Covanta shut them down, only ran the plants intermittently following the bailout’s passage.