Conifex said it hopes the bio-energy project, with a 36 MW steam turbine, to be co-located Mackenzie mill, will be able to produce 230 gWh of energy each year by burning waste fibre from the its Mackenzie and Fort St. James mills, as well as nearby timberlands.
"We are very excited to add clean energy generation to our timber harvesting and lumber manufacturing operations,” said Ken Shields, Conifex’s President and Chairman.
“The development of bio-energy in conjunction with our traditional operations will diversify existing revenue sources, counteract some of the volatility inherent in the commodity lumber sector, and provide additional stable employment opportunities within the community of Mackenzie," he said.
The company is still negotiating with provincial utility BC Hydro for a power purchase agreement, but it hopes to have the plant in commercial operation by the summer of 2012. Any agreement with BC Hydro would be subject to regulatory approval.
The $10.5 million turbine was manufactured by Dresser-Rand Canada, Inc. The turbine acquisition agreement contains cancellation rights in favour of Conifex that may be exercised if the bio-energy project is stymied during the approval process.
Conifex was launched in 2008 when it purchased the Fort St. James sawmill in northern British Columbia, which had been idled by its previous owners. It bought the two-mill Mackenzie facility in 2010.
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