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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-family:"Calibri","sans-serif"'>The Lakeview projects picks up after a failed $100 million biomass project there by <a href="http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&sqi=2&ved=0CCUQFjAB&url=http%3A%2F%2Fwww.iberdrola.es%2Fabout-us%2Flines-business%2Fpower%2F&ei=VVEoVNDTK8uwigKf2YHACQ&usg=AFQjCNFWi2vcKxPabr7LqUiIsEpriZcJhw&sig2=X0onbOS_zs10iNFxEboqQg&bvm=bv.76247554,d.cGE"><span style='color:windowtext;text-decoration:none'>Iberdrola</span></a> who reportedly stopped in 2011/2012 due to the lack of a suitable power purchase agreement and uncertainties about the California renewable portfolio standards. They were also looking for higher emissions allowances than permitted on the site. The infrastructure is there. The resource can be expensive if it is coming from forest restoration. That project would have consumed 160,000 tpy biomass. The Red Rock project is looking for 140,00 tpy. That’s equivalent to a 14-16 MWe power plant which is the smallest standalone biomass plant that you would build today due to economies of scale. <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif"'>Is there enough margin and market for a new technology? Lots of challenges. We’ll see. <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri","sans-serif"'>Tom <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif";color:#1F497D'>AK></span><span style='font-family:"Calibri","sans-serif"'>It gets even worse. They plan to build their gasification plant in Lakeview, OR. That area has what we in Western Oregon call a "shrub forest" compared to the density and size of the trees along the Pacific Coast.<o:p></o:p></span></p><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif"'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri","sans-serif"'>They must have struck a pretty good financial deal to make them site their plant in a fairly challenging resource area.<br><br>Art <o:p></o:p></span></p></div></div></div></body></html>