The Cowlitz PUD has embraced an Olympia man’s plan to build a plant in Longview capable of converting wood scraps into both electricity and ethanol, a first-of-its-kind operation that would create green energy and jobs. To this point, however, the PUD’s embrace has not come with the main thing the utility can offer — money.

Marc Rappaport, 64, said Wednesday he’s plotted for 15 years to build an innovative biomass plant, which could turn wood waste into a hot gas, with most going toward making electricity, but some siphoned off to manufacture ethanol.

There’s no plant quite like it in the world, he said. But with climate change, gas prices and a new president, the time is ripe, he said.

“All of these things have combined. Some of us have been ready.”

Rappaport, who has three employees, said he envisions a plant capable of generating 25-megawatts of electricity and 20 million gallons of ethanol a year. The plant would employ 100 people, earning $40,000 to $100,000 a year, and consume 300,000 tons of wood waste a year, he said.

Plans to build the plant in Eastern Oregon and then Vancouver fell through. The new spot Rappaport has picked out — land at Swanson Bark and Wood Products on Tennant Way — is already equipped to handle wood waste, though he hasn’t signed a lease yet.

PUD commissioners gave the project a boost this summer by formally declaring their support, which helped Rappaport win this week a $1.5 million low-interest loan from federal stimulus funds.

The Washington state Department of Commerce received more than 120 applications for renewable energy projects, and Rappaport was one of 19 picked to receive Recovery Act money.

“It’s a good project,” said Cory Plantenberg, the department’s energy program manager.

The department awarded the loan assuming the PUD will match it, helping Rappaport raise the additional $6 million he needs to build a scaled-down plant next year to showcase his idea to investors.

PUD General Manager Brian Skeahan said Wednesday that the PUD has looked at several biomass projects to invest in, and Rappaport’s plan is at the top of the list. Still, the PUD hasn’t committed itself to kicking in any money.

“There are things about this project that are interesting to us — no doubt,” Skeahan said. “His technology appears to be very promising. On the other hand, it’s never been done quite like this before, and that’s a problem, especially for a public utility, which is not a big-time capitalist risk-taker.”

Skeahan said the PUD probably will hire a consultant to study Rappaport’s plan. “The serious conversation really begins now,” he said.

There may not be much time for that discussion.

Platenberg said the state wants to sign a loan agreement with Rappaport before the end of the month.

Rappaport called putting together a plan to satisfy the state “manageable” and said he was confident the project’s time had arrived.

“Once gas hit $4 (a gallon), that woke people up,” Rappaport said.