LONGVIEW, Washington (From news reports) -- Nippon Dynawave Packaging says it is working to appeal a canceled U.S. Department of Energy grant worth more than $46 million to help the Longview plant switch to an emerging filtration technology to reduce the energy used in its production process.

The Cowlitz County project is among 321 axed financial awards for energy projects worth $7.5 billion that the Department of Energy announced this month, which build on earlier cuts announced in May. Washington Gov. Bob Ferguson's office also issued a release last week condemning the cuts and listed 11 projects across Washington state worth $1.1 billion.

The bulk of the state's impacted funding surrounds a nearly $1 billion multi-county hydrogen infrastructure project, but the Cowlitz County project makes a third of the remaining $139.7 million in federal projects across the state, including Skagit, Lewis, Spokane and Whitman counties.

Brian Wood, director of support services at Nippon Dynawave Packaging in Longview, told The Daily News in an email that the company "was disappointed by this decision," and that Nippon "anticipated process and energy efficiencies from the installation of the proposed novel technology."

Nippon Dynawave's proposal

The grant was originally awarded to Nippon Dynawave Packaging by the Department of Energy's Office of Clean Energy Demonstrations on Dec. 18.

According to the Department of Energy's release last week, 26% of the 321 canceled funding awards had been issued in the last days of the Biden administration between the November election and President Trump's second inauguration in January.

Ferguson's office also says the federally funded projects in Washington state "are critical to advancing Washington's transition to net-zero greenhouse gas emissions by 2050."

Filtration system

Pumps and industrial equipment that make up the novel filtration system that Nippon Dynawave Packaging in Longview was set to adopt thanks to a federal grant worth $46.6 million. The Trump administration canceled the decarbonization and energy efficiency proposal awarded in December. Officials at the Longview plant say they are working to appeal the decision.

The Office of Clean Energy Demonstrations grant was worth $46,594,001 and covered the first phase of implementing a novel filtration system at the Longview mill to remove water instead of using heat. According to documentation about the project, the first phase covered processes that included design, engineering and construction.

The Longview plant is a subsidiary of the Japan-based Nippon Paper Group. According to the company website, it manufactures dry market pulp -- a base ingredient used for printing paper, pet pads and filtration paper, among other products, as well as the specialized paperboard used for liquid containers such as milk cartons and disposable drink cups.

Significant energy, carbon savings

For Nippon Dynawave's energy efficiency project, the packaging company partnered with filtration systems specialist Via Separations of Watertown, Massachusetts. The company designs specialized membrane filtration systems for industries such as Kraft pulp manufacturing that "displaces steam use" in evaporators.

"As far as NDP and our technology partner, Via Separations, know, the termination of the Cooperative Agreement Award remains under appeal," Wood said.

Via Separations' membrane systems work similarly to reverse osmosis filters, according to the filtration company's website, by separating water out of the wood pulp mixture without needing to add heat. The company says its system reduces the energy needed in one of the most energy-intensive parts of the wood pulp and papermaking process.

The December release about Nippon Dynawave Packaging's grant notes an expected 70% reduction in carbon dioxide emissions per gallon of water removed as part of the pulp production process.

In addition to carbon savings, the Department of Energy under the Biden administration touted "a transformative energy efficiency improvement" that it believed could lead to success in other industries.

"This project would not only reduce the facility's process energy intensity but also demonstrate the viability of the membrane technology to potentially scale across all other domestic pulp and paper mills and other industrial sectors, such as chemical manufacturing," OCED stated when it awarded the project.

The cancellation

In May, the federal government agency conducted a "thorough and individualized financial review" of awards issued by the Office of Clean Energy Demonstrations that Secretary of Energy Wright's office claimed "failed to advance the energy needs of the American people, were not economically viable and would not generate a positive return on investment of taxpayer dollars."

When reached for comment Tuesday afternoon about the Longview project's cancellation, a Department of Energy spokesperson provided the following statement:

"Secretary Wright was clear: The Energy Department has conducted a thorough, case-by-case review of every award. The Secretary's May memorandum formalized that process, establishing clear standards to safeguard taxpayer resources. The 321 awards terminated failed to meet the standards required to justify continued taxpayer investment and would have led to less reliable, more expensive energy," the DOE states. "As the Secretary has stated repeatedly, the Department is restoring common sense by prioritizing affordable, reliable, and secure energy while protecting the best interests of the American people. President Trump promised to make government more accountable and efficient, and Secretary Wright's actions deliver on that promise."