A new initiative aims to transform the troubled IronWood Mill property near Dolores, Colorado. The mill, which ceased operations last year after Montezuma County sued over fire hazards from excessive wood chip piles, was further crippled by the pandemic’s supply chain issues. Now, Palaterra-USA LLC, the American division of a German soil enhancement company, plans to establish a biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More production facility on the site, with operations starting by the end of July.

Palaterra-USA initially sought a high-impact permit, but the site’s rezoning in 2019 for industrial use exempts the company from needing one. Biochar, produced through pyrolysisPyrolysis is a thermochemical process that converts waste biomass into bio-char, bio-oil, and pyro-gas. It offers significant advantages in waste valorization, turning low-value materials into economically valuable resources. Its versatility allows for tailored products based on operational conditions, presenting itself as a cost-effective and efficient More of organic waste materials like beetle-kill wood, enriches soil and offers benefits in filtration and cosmetics. It also generates revenue through carbon credits, which reward carbon sequestration efforts.

Despite the promise, the venture faces local opposition due to concerns over the background of Palaterra-USA’s CEO, Rolf Schwenninger, who has faced legal issues, including fraud and theft charges. Critics worry about environmental risks, especially given the proximity to residences and an irrigation canal, and the lack of required environmental studies.

The property, still owned by IronWood’s CFO, Mark Hartman, with support from former plant manager Wade Bentley, has ambitions beyond biochar. Bentley envisions future plywood manufacturing to eliminate waste. However, community members, scarred by IronWood’s history, remain skeptical and seek more stringent regulation to protect their environment and health.

Palaterra-USA and its partner, BioChar Now LLC, plan to employ up to 300 locals, blending imported expertise with community labor. Yet, with the biochar industry still in its infancy, the long-term economic and environmental impacts remain uncertain.

READ MORE: Dust to Dust: New company on IronWood property seeks to recycle carbon, clean up mill site