The two plants will have a combined annual production capacity of 175,000 tonnes of wood pellets, the sale of which is tied to a long term agreement with a power utility customer. The total investment of $58 million will include electrical self-generation capacity of 3 megawatts supported through BC Hydro’s Power Smart Load Displacement Program.
“These investments enhance our utilization of sawmill residuals and contribute to our Company’s overall sustainable value proposition,” said Canfor Corporation President and CEO Don Kayne. “We are pleased to continue our strong partnership with BC Hydro on renewable energy, and contribute to the Province’s goals of sustainable power generation.”
“BC Hydro is proud to partner in projects that generate renewable energy and reduce overall electricity demand on BC Hydro’s system,” said Joanna Sofield, Power Smart general manager. “This project will displace 19.1 gigawatt hours of Canfor’s electricity consumption per year for 20 years, with a positive impact on all BC Hydro customers. This investment by Canfor is a great fit with Power Smart’s Industrial Program.”
The pellet plants are scheduled to commence production in the third and fourth quarters of 2015.