San Francisco - International Paper has received $400,000 in federal stimulus funding for an energy efficiency upgrade to its Henderson, KY, recycled linerboard mill.

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 the Evansville 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.