Canfor plans 2 British Columbia pellet projects

By Staff | November 24, 2014

Canfor Corp. plans to colocate pellet plants at its sawmill sites in Chetwynd and Fort St. John, British Columbia. The facilities will have a combined capacity of 175,000 metric tons of pellets per year. The pellet plants will be constructed and operated in partnership with Pacific Bioenergy Corp.

A long-term agreement is in place with a power utility customer for the sale of pellets produced at the plants. The total investment of $58 million will include electrical self-generation capacity of 3 MW from a combined-heat-and-power (CHP) plant located at the Chetwynd site. The CHP system is supported through BC Hydro's Power Smart Load Displacement Program.

Feedstock for the plants will come primarily from the associated sawmill at each site, though some additional material will come from other Canfor mills and the open market, said Corinne Stavness, director of public affairs and responsibility at Canadian Forest Products Ltd.

Construction is scheduled to begin in the fourth quarter with the plants scheduled to commence production during the third and fourth quarters of next year.