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Developers pitch large biomass-and e‑methanol project at Oroville’s former Popeye site, estimate hundreds of jobs

2652003 · February 13, 2025
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Summary

Representatives for a joint venture called Butte Renewable Energy introduced on Jan. 30 a plan to redevelop the decommissioned Popeye biomass site in Oroville, build a modern low‑emission biomass plant and later add carbon capture and e‑methanol production.

Representatives for a joint venture called Butte Renewable Energy introduced a multi‑stage plan Jan. 30 to redevelop the former Popeye biomass site in Oroville, rebuild a modern biomass plant, capture CO2, and produce e‑methanol — a shipping fuel the presenters described as a low‑emission commercial product for decarbonizing maritime transport.

Michael Spencer, who identified himself as a representative of Brie Butte Renewable Energy Inc., said the project would combine forest‑management feedstock from surrounding forests, local agricultural residues and urban wood waste to supply a new biomass plant at the old industrial site. He said the developer plans a phased project: a new low‑emission biomass plant to process local biomass and a later phase to add carbon capture and “power‑to‑X” technology to make e‑methanol and other fuels.

“...we are here today to reignite the opportunity to rebuild, redevelop, recommission all of the existing biomass plants in the area,” Spencer said, describing the proposal as a way to address forest fuel piles while producing an exportable, low‑carbon product.

Why it matters: The project would address two local priorities the council has discussed — forest fuel reduction to reduce wildfire risk, and economic development in Oroville’s industrial areas — while proposing a large capital investment. Developers estimated significant jobs during construction and operation; they also noted multiple environmental and regulatory processes would apply.

Project scope and claimed benefits

- Site and technology: The team proposed removing the decommissioned plant infrastructure at the Popeye site, constructing a new biomass facility designed to meet modern emission standards, and ultimately integrating carbon capture and hydrogen production via electrolysis to synthesize e‑methanol. The presenters said some technologies were already used in parts of Europe and have been designed to meet California emission standards.

- Feedstock and wildfire risk reduction: Presenters emphasized the facility would accept forest thinning material and other biomass residues as a win — using material that otherwise poses a wildfire risk. Les Day and Doug Lindgren (partners identified in the presentation) were described as having forest‑management experience and local relationships to supply feedstock.

- Jobs and economic impact: The developer team projected roughly 500 construction jobs and approximately 500 long‑term operations and ancillary jobs, and said the facility would aim to provide “sustainable living‑wage” positions and new technical roles. The presenters said the overall program included additional opportunities such as steam/heat use for local industry and training partnerships with Butte Community College.

Regulatory and environmental considerations

Council members and staff asked detailed questions about emissions, prior operational problems at the old plant, feedstock contaminants (for example, orchard waste with high silica), and air‑quality permitting. The presenters said they plan a new, high‑efficiency combustion system and that later phases would incorporate CO2 capture and advanced fuel synthesis; they also said they had been speaking with regional partners including the Butte Fire Safe Council about long‑term feedstock availability.

A council member asked whether the company had secured air permits or emission credits; the presenters said they were at an early stage and that the new design would be engineered to meet modern air standards and that environmental review and permitting would be required. Spencer gave a high‑level cost estimate: roughly $100 million or more for the biomass plant alone and a multi‑hundred‑million‑dollar price tag for later phases that add electrolysis and methanol production (the team estimated a staged capital program that could reach around $500 million depending on scope and solar/battery integration).

Next steps and council reaction

Councilmembers expressed guarded interest and asked staff about potential local support mechanisms such as an energy zone or streamlined approvals for the industrial site. Councilman Smith said Oroville’s combination of nearby forest feedstock, agricultural processing capacity and an available industrial site made the location attractive. A council member and public‑safety speakers offered technical cautions based on prior plant history (burner efficiency, material handling, pile management) and recommended follow‑up technical meetings; several councilmembers suggested staff continue to facilitate coordination with regional partners and review regulatory pathways.

Ending

Presenters asked the city to remain open to collaboration while they develop technical designs and financing. Staff said they would continue coordination, and council members requested further information on air‑quality permits, feedstock contracts and the project’s staged financing before considering any local incentives or zoning changes.