NWE and Smurfit Stone

Courtesy of Shelley Ridenour at the Daily Interlake, it is now public that NorthWestern Energy is aggressively pursuing the acquisition of the shuttered Smurfit-Stone Facility at Frenchtown.  NorthWestern Energy's perennial biomass promoter, John Fitzpatrick, made the announcement at the Montana Wood Products Association's annual meeting.   According to John Fitpatrick, the facility would require a $60 to $70 million investment and have a nameplate capacity of 40 MW. 

This is certainly exciting news.  But before jumping on the biomass bandwagon, it is important to take a hard look at the economics of such a propasal.  A couple observations:

1. I am seriously sceptical that as Mr. Fitzpatrick claims that "“wind is no cheaper than biomass.”
2. Will the plant meet MT's RPS standards?  The intent of the RPS was to encourage new construction, not the purchase of old plants.  
3. What about the air permit?  Given the airshed designation in Missoula, it could be virtualy imposibile to get a new air permit for the facility, if one was required by applicable upgrades.

What do other folks think?  Is this a good bet for new generation for Montanans, or is NorthWestern Energy just looking at Avista's Kettle Falls facility with jealousy?