Canfor to build two pellet plants in BC, Canada

Canfor is planning to construct two pellet production plants, one at each of its sawmill sites located at Chetwynd and Fort St. John in the Canadian province of British Columbia.

The plants, which will have a combined production capacity of 175,000 tonnes of wood pellets, will be developed and operated in partnership with Vancouver-based wood pellet fuel supplier Pacific Bioenergy. The pellets will be sold to a power utility customer under a long-term agreement.

The total investment of $58 million (€45.6 million) will include electrical self-generation capacity of 3MW supported through BC Hydro's Power Smart Load Displacement Program.

'These investments enhance our utilisation of sawmill residuals and contribute to our overall sustainable value proposition,' Canfor's president and CEO Don Kayne said on a statement. '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,' adds Joanna Sofield, Power Smart general manager. 'This project will displace 19.1GWh of Canfor's electricity consumption per year for 20 years, with a positive impact on all BC Hydro customers.

The pellet plants are scheduled to commence production in the third and fourth quarters of 2015.