The grant, administered by the Kentucky Cabinet for Economic Development, will pay for 40%-to-60% of the total cost of the project, according to Kentucky Gov. Steve Beshear's office.
IP told the city in February the project would reduce water usage and result in nearly $1 million in annual savings, according to a report in theEvansville Courier & Press.
The Henderson mill has capacity for 220,000 tons/yr of recycled linerboard on one machine, and employs 85.
The state grant was part of $3.5 million awarded to three energy projects. Thirteen proposals were received and scored using the following criteria: jobs created or retained, with an emphasis on green jobs; amount of energy saved per grant dollar invested; degree of investment/impact in the local community; private dollar match/leverage of grant funds; project elements that maximize demonstration/showcase value; and offeror qualifications/capability and responsiveness to the RFP.