Canadian Biomass • November/December 2010 • Biomass Update

New BC pellet plaNts Two new wood pellet plants are under construction in British Columbia. Pinnacle Pellet is adding to its fleet, with a sixth pellet plant located about 27 km southeast of Burns Lake. Construction began in mid-September and completion is expected in December. The plant has a planned production capacity of 400,000 tonnes/year, increasing the company’s total production capacity to more than one million tonnes. The Burns Lake plant will use residue from local sources and wood feedstock from the Hampton Affiliates Babine Forest Product mill located approximately 3.5 km away. The pellets are shipped Overseas to replace coal in power generation. Lhtako Energy Corporation officially broke ground in mid-October for its first pellet plant. The plant is scheduled to open in spring 2011. The company is a partnership of the Red Bluff Indian Band and National Choice Bio Fuels. The Red Bluff Indian Band, also known as the Lhtako Dene Nation, signed an Economic Development Agreement with the province of British Columbia in November 2009, allowing the Red Bluff to harvest 75,000 cubic metres/year of mountain pine beetle-killed timber in the Quesnel Timber Supply Area for the next 15 years. paper mIll gets Co-geN deal The Ontario Power Authority and St. Marys Paper Corporation have signed a 10-year contract for renewable electricity. The paper company will generate electricity from biomass at a new plant to be built next to its existing mill in Sault Ste. Marie, Ontario. St. Marys Renewable Energy Corporation will operate the new plant, which is contracted to supply 30 MW of electricity. Construction is expected to start in 2011,With commercial operation by early 2014. The primary fuel source will be biomass, including bark and waste wood. The heat will be used in the mill’s industrial processes; the electricity that is not used by the mill will be sold to the grid. St. Marys has negotiated a commitment of up to 400,000 tonnes/year of biomass from the Algoma and Northshore Crown Forests for the life of the project. peI puBlIC BuIldINgs get Biomass heat The province of Prince Edward Island has accepted two proposals to supply biomass-based heat for five public buildings. Atlantic Bioheat will supply biomass-based heat to M. E. Callaghan and Hernewood junior high schools. Wood- 4heating will supply biomass-derived heat to Three Oaks High School, Bluefield High School, and O’Leary Community Hospital. The contractors are responsible for the capital costs of installing and operating the heating units and are required to use local resources and create local expertise with biomass. The forest feedstock used to produce the heat must be harvested in a sustainable manner from woodlots that have a registered forest management plan. Environment, Energy, and Forestry Minister Richard Brown says that the provincial government will consider further expansion of biomass-heating projects in the future. IN BrIeF... Coal conversion scheduled As Ontario Power Generation (OPG) continues with its plan to convert Atikokan Generating Station from coal to biomass, it projects plant modifications to begin in 2012 and be completed in late 2013. Once a power purchase agreement with Ontario Power Authority is reached, OPG will start exploring fuel-purchase contracts. NS Power gets biomass wish According to reports in Nova Scotia’s Chronicle Herald newspaper, the Nova Scotia Utility and Review Board conditionally approved the NewPage-Nova Scotia Power (NSP) biomass power proposal in mid-October. NSP has reviewed the stipulated conditions and has decided to proceed with the 60-MW biomass power plant in Port Haweksbury, Nova Scotia. Wood supply competition The Ontario Ministry of Northern Development, Mines, and Forestry began communicating with applicants to the Provincial Wood Supply Competitive Process in late September. As a result of evaluations, some applicants will not be able to proceed further in the process because they did not meet minimum thresholds with respect to certain criteria, including management experience, financing and investment, economic and financial viability, operating feasibility, wood supply, and Aboriginal benefits. For applicants proceeding to the next step, the ministry will explore wood supply allocation options to determine which proposals provide maximum benefit for Ontario. Updates are being posted at: http://www.mndmf.gov.on.ca/forestry/ crownwood_e.asp. NL pellet plant close to start Workers at the Holson Forest Products pellet plant in Roddickton-Bide Arm, Newfoundland, are finalizing the conveying and electrical systems and preparing to commission the plant in late November and early December. The 50,000-tonne capacity plant is looking to supply both domestic residential and European customers.