The town is Sutton considering a plan to use the old Burke Lumber Mill site for a plant that would produce wood chips and pellets.
Officials are holding a hearing this week to see if residents want to seek 30-thousand-dollars in Vermont Community Development grant funds to study the idea.
Regional planner Laurie Zilbauer says the study would focus on the market, the potential supply, and if the old Burke Lumber site would be a good spot.
Another study says the Northeast Kingdom is a great area for expanding the supply of wood-based biomass fuel.
The Sutton plan could lead to a cooperative with loggers, the county forester, timber companies and others.