Operations at the ReEnergy plant in Fort Fairfield were suspended over the weekend.
It happened at around midnight on Sunday. ReEnergy's Director of Communications and Governmental Affairs Sarah Boggess told town officials that they've been operating in a very challenging market environment.
Boggess says the value of renewable energy certificates has dropped significantly over the last year, the price for electricity is weak, and the facility's energy sales agreement with Emera reached its cap on Sunday.
She says with all of these circumstances, the operation is not financially viable.
The 37-megawatt biomass power facility is located on Cheney Grove Road.
It uses sustainably harvested biomass to produce renewable energy.
The Fort Fairfield facility currently has 21 employees and supports many indirect jobs.
According to Boggess, some employees will relocate to the Ashland facility and one will be maintained in Fort Fairfield.
She says the remaining employees will be laid off, most likely in December.
They've not yet decided what to do with the plant and property.
Boggess says the company will continue working with economic development officials to recruit a co-locating partner.
WAGM has reached out to the company for comment but has yet to hear back.