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November 28, 2022

Millinocket-to-Searsport rail connection proposed to boost distribution of wood pellets

aerial of woods and water COURTESY / ONE NORTH A forest products campus, with a “production-to-port” rail transportation corridor connecting One North to an international deep-water port in Searsport, will be anchored by a wood-pellet mill for the energy biomass market.
Improved rail infrastructure is considered a critical part of getting wood pellets to the deep-water port in Searsport, where they can be shipped to international markets. 
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Global export of Maine-produced wood pellets is the goal of a proposed forest products campus and rail transportation corridor at One North, a 1,400-acre, mixed-use industrial site in Millinocket that was formerly the Great Northern Paper mill site.

One North is managed by Our Katahdin, a nonprofit founded in December 2014 to support community and economic development in the Katahdin region.

With partners, Our Katahdin said it plans to develop a “One North Forest Products Campus” with an upgraded and expanded “production-to-port” rail transportation corridor connecting One North to the deep-water port in Searsport. 

The campus will be anchored by a wood-pellet mill for the energy biomass market, along with associated timber-related industrial development designed to process biomass from the North Maine Woods as well as forestry residuals from existing industries across the state, providing a market for low-grade timber and related products. 

The campus is expected to provide an opportunity for other forest product manufacturers as well.

Our Katahdin said it has partnered with Highland Carbon Solutions of Pine Bluff, Arkansas, on the collaborative development of the wood pellet production facility.

Highland Carbon Solutions is a project development affiliate under common control with Highland Pellets LLC, a forest products manufacturing company. HCS specializes in wood pellet production and export. The Pine Bluff facility delivered its first consignment of pellets in 2017. The facility began a series of upgrades in 2020 to bring production capacity to more than 650,000 metric tons of wood pellets per year for export to the European market. 

HCS has a track record of success in sustainable, clean wood pellet production, said Steve Sanders, One North’s director of industrial site development.

In Millinocket, the goal is to export Maine-manufactured wood pellets around the world, create good-paying jobs and bolster the region's forest products supply chain.

Improved rail infrastructure is considered key to the project. Improvements to the rail line and ancillary infrastructure include increased railcar storage capacity at the NBM Railway’s railyard within One North and improved siding locations along the railway corridor between Millinocket and Searsport. 

A rail spur site plan has been developed for One North and includes the addition of safety gates to three at-grade rail crossings within the town of Millinocket.

NBM Railways is a member of J.D.Irving Ltd. Group of Cos. of New Brunswick.

The railway improvement project will be led by the Maine Department of Transportation and NBM Railway. It’s scheduled to begin design and permitting in 2023, with construction anticipated to begin in 2024. 

Our Katahdin is partnering with the MaineDOT, HCS, and railroad partners NBM Railways and Canadian Pacific Railway to submit a $56.8 million Consolidated Rail Infrastructure and Safety Improvement application to the Federal Railroad Administration. The application is expected to leverage matching funds.

The 106.5-mile rail corridor between Millinocket and Searsport, owned by NBM Railways and Canadian Pacific Railway, will be used to transport pellets in specialty, bulk-transport rail cars from One North to Sprague’s Searsport terminal for export to European energy markets.

“The Mack Point terminal in Searsport is a versatile and well-equipped marine cargo and rail terminal that connects Maine’s forest products to global markets,” said Matt Burnes, executive director of the Maine Port Authority. “Improving the rail corridor from Millinocket to Searsport complements the investments made by the state of Maine over the last few decades at the Port of Searsport and will directly benefit Maine people and businesses.”

It’s expected the application will be submitted by the end of November. 

With improved rail infrastructure, the campus and corridor could be operational by 2026.

Overall, One North is looking to attract tenants in sustainable forest products, including saw and pellet mills and mass timber; bio-based manufacturing; renewable energy, including biofuels, solar and hydro; aquaculture and data storage. 

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