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The Escanaba City Council has voted to open negotiations with Sterling Energy Group on a possible sale of the city’s power plant.
The Gary, Indiana-based company made a proposal in late January to buy the Escanaba Power Plant and turn it into one that burns biomass rather than coal. The company already operates similar “green energy” power plants in Niagara Falls, New York and in Crawfordsville, Indiana.
Chief Financial Officer Jason Sharp says that the company would be investing $40 million into converting the plant, and the new operation would create 30 to 35 jobs in the community.
Escanaba Mayor Marc Tall says that a decision needs to be made by this summer, when it’s possible that the city will stop being paid by the Mid-Continent System Operators to keep the plant available for energy-making.
But Tall says he has some questions about the terms of the proposed deal, including the company’s offer of $250,000 for the plant…a price that is much lower than previous offers had been.
Tall says that the city could close, and possibly demolish, the power plant if no sale is reached this year.
Officials say it would cost the city $2.7 million to demolish the plant.
