By Jason Blevins | The Colorado Sun
The pioneering biomass plant in Gypsum — the first in the state to begin converting shredded beetle-kill trees into electricity — has shut down and its owner has filed for bankruptcy protection citing more than $40 million in debt.
The closure has terminated wildfire mitigation efforts in Colorado’s forests and reveals the growing struggle of burning biomass for electricity as demand grows for more affordable renewable energy options like solar and wind. The highest bidder for the plant and the 94-acre property along the Eagle River in Gypsum — revealed last week in Colorado U.S. Bankruptcy Court — is an Illinois-based real estate firm that proposes paying $2.45 million. The trustee in charge of the sale said the Urban Investment Research Corp. bested four potential bidders — and 22 who expressed interest in the plant and its assets — and the commercial real estate owner would not renew a contract to sell electricity to Holy Cross Energy.