IDA woos wood-burning plant

NOVI Energy l projected to employ 35; company offered Georgia Pacific site for $1

Members of the Halifax County Industrial Development Authority on Friday morning approved a memorandum of understanding with NOVI Energy, LLC to give the company an option on 100 acres of land on the former

Georgia-Pacific property to develop a wood-fired power generating facility. The young company, founded in 2002, is headquartered in Michigan, with a two-fold mission, according to its website. That mission includes

consulting — helping clients create a more efficient energy strategy — and operating privately owned substations and small plants that produce electricity and steam. According to IDA Executive Director Mike Eades, the company would hire 30-35 employees with the capital cost of the facility and equipment being around $150 million.

Company President Anand Gangadharan, who started the company, confirmed that he has been in negotiations with local and state government and economic development officials over the past year. "We have been well received by government officials there, as well as IDA members and those of the Virginia Economic Development Commission,"

Gangadharan said. "We want to be a good corporate citizen," he added, as he noted he is looking for help in getting the plant off the ground. The memorandum of understanding states that the total purchase price for the GP site is $1 for the 18 month option. The initial term of that option may be extended at NOVI's discretion for two additional periods of six months each at the cost of $5,000 for each period. Novi may buy the property with a sixty day notice to the IDA of their intent to close. The IDA expects to assist NOVI in financing the project and to explore

potential financing options, which may include taxable financing and tax-exempt financing. NOVI has indicated that the GP site has certain amenities that are required for the successful development and operation of their project,

including access to a high voltage electric transmission system, the availability in adequate quantities of both potable and non-potable water, access to highways and the potential for the extension of rail service if needed.

Since the project falls within the IDA's mission of promoting industry the IDA, along with Halifax County, will apply to the Virginia Department of Transportation (VDOT) for the re-instatement of an earlier Industrial Access Road Grant previously approved by VDOT. Those funds can be used to make whatever improvements to Plywood Trail and its intersection with US Route 360 that are needed. Gangadharan says his company will offer "good jobs" to its employees who range from engineers and technicians to plant operators and bulldozer operators. "Our salaries will be competitive with those of companies like ABB," he said.