Adage, the joint venture of Duke Energy and Areva, has canceled plans for a $250 million, 55 MW biomass plant in Washington state and has suspended plans for any new construction because of low demand for biomass energy and low natural gas prices, according to the Charlotte Business Journal.

Company spokesman Tom DePonty said in the article that the recession caused weak demand for biomass and natural gas is now the preferred alternative. He also said the two companies expected more movement by states and the federal government to mandate winder use of renewable energy.

The company still has a permit to build a 55 MW plant in Florida but there are no plans to start construction and the company is expected to let the permit lapse in June. Adage ended plans in 2010 to build another plant in Florida.

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