GORHAM, N.H. – Efforts to install a wood-fired biomass burner at the Fraser Papers mill are getting a boost from a group that invests in economic development projects.

The New Hampshire Community Development Finance Authority administers state tax credits and federal grants to support affordable housing and economic development projects. It recently approved a $1 million grant application for the boiler project, but the governor and Executive Council have the final say on the grant awards.

Fraser Papers laid off 80 employees in April after high energy costs have forced it to close one paper machine. It is exploring replacing oil-fired boilers with two biomass boilers as a way to sustain the mill and convert to steam heat rather than remain dependent on oil.

The Gorham planning board already has given the mill site plan review, but more money is needed. The total cost of the boiler project is about $16 million. The company is trying to get some funding through a loan from the New Hampshire Business Finance Authority in hopes of having the boiler up and running in January.

In Maine, Fraser Papers uses a wood-fired biomass boiler at the Katahdin Paper Co. mill it operates in East Millinocket. That mill is staying open, while another the company operates in Millinocket using oil for energy is closing.