Cleveland-Cliffs Inc. plans to build a plant near Orr that produces biomass fuel for its taconite operations.
The project, announced at a press conference this morning at the Orr City Hall, is expected to directly create jobs for about 25 people, with an annual payroll of more than $1 million. It also would provide additional work and revenue for loggers, suppliers, vendors and farmers in the area.
The proposed $15 million, 100,000-square-foot facility would be located four miles north of Orr in the small town of Cusson (pronounced cousin).
The plant would be part of a Cleveland-Cliff's subsidiary called Renewafuel, a company that expects to be producing 2.5 million tons of biofuel within five years. Renewafuel already has a 500,000-ton-per-year plant in Battle Creek, Mich., and has plans for another production center in Marquette, Mich.
The Cusson plant hinges on final approval by Renewafuel's board of directors. Cleveland-Cliff's indicated it will seek loans and grants from the Iron Range Resources Board and the Minnesota Department of Economic Development in support of the project.
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Before the company can proceed, however, it will need to obtain permits and approvals from the state.
Nevertheless, Cleveland-Cliffs projects the Cusson facility should be ready to begin production by the fourth quarter of 2009.
Renewafuel produces a cubed fuel about the size of a charcoal briquette. In terms of energy content, the fuel is similar to coal from the western United States, but Renewafuel cubes produce 90 percent less sulfur dioxide, 35 percent less particulate matter, 50 percent less mercury and produce 30 percent less acid gas than coal.
