Forest Energy Corporation announces plans to open a renewable energy fuel plant in Northern New Mexico. The plant which will operate under the name New Mexico Fuels will produce fuel, primarily for thermal energy, in the form of wood pellets. The company has entered into a long term lease for the old Duke City sawmill site just north of Espanola. The drying system is in place on site and the balance of the modular plant will be delivered by mid-summer. New Mexico Fuels, a wholly owned subsidiary of Forest Energy Corporation anticipates that the 40,000 ton per year plant will be in operation by late summer. “With the increase in transportation costs in part due to rising diesel prices, we needed to provide additional production closer to our customers in Colorado and New Mexico in order to assure them with the best value,” Forest Energy Corporation President Rob Davis said. “Although the markets have been very slow to grow, the new facility has a strong base of existing customers and will provide potential for additional growth.” The wood pellets currently produced by Forest Energy at their Show Low, AZ plant are sold in big box stores such as Home Depot, Costco, Ace Hardware and Lowes as well as many independent hearth product dealers throughout the west and southwest; including California, Nevada, Arizona, Colorado, Utah and New Mexico.
The pellets will be created, in large part, from wood residue collected from forest restoration projects. Pellets create a clean alternative energy source to tens of thousands of homes in the southwest and hundreds of thousands across the country. Renewable biomass thermal energy offers benefits for forest health management, local energy supply, fossil fuel conservation as well as carbon reduction and rural economic growth. Forest Energy Corporation is also a provider of biomass boiler systems for heating larger commercial and institutional buildings.
Forest Energy Corporation has been producing pellets and serving the southwest since 1992 with their Heat’rs, TerrAmigo and Greentree brands that will now be produced in New Mexico. For more information on Forest Energy Corporation, visit www.forestenergy.com.

