A Maine biomass energy company has filed a breach of contract complaint in federal court against Canadian-based KMW Energy.
The complaint alleges that a faulty steam turbine KMW delivered two and a half years ago to Georges River Energy (GRE) in Searsmont will cost it in excess of $10 million.
“It doesn't produce the power it is supposed to, and it consumes more fuel than it should, and it is prone to breaking down so that it is basically not reliable in the short term or the long term,” says Attorney Robert Ruesch, who is representing Georges River Energy, which is affiliated with Robbins Lumber Company.
In the complaint GRE says it's had to continue operating both its existing biomass system and the new one, greatly increasing operating costs. Because KMW is insolvent, GRE is demanding that the Canadian firm's insurance company replace the faulty turbine and pay damages.