A developer has withdrawn an application to build a wood-fired electrical generating plant near Klamath Falls.
Klamath Falls Bioenergy said delays in getting a state siting permit meant it couldn't meet a year-end construction deadline set by federal economic stimulus legislation, which was expected to provide 30 percent of the project's cost.
Neighbors had organized to oppose the biomass project. It would have burned wood chips to provide enough power for about 35,000 homes.
A local economic development leader, Trey Senn, tells the Klamath Falls Herald and News that California recently required more of its renewable energy to be generated in-state. He says that eliminated a large market for any Klamath County plant.
Senn says the withdrawal clears the way for a biomass project proposed by Portland-based Iberdrola Renewables.