Ontario sawmill to build pellet plant

By Anna Simet | November 28, 2012

Resolute Forest Products has announced plans to build a $10 million wood pellet plant at its sawmill in Thunder Bay, Ontario.

Resolute, which owns or operates 22 pulp and paper mills and 22 wood products facilities in North America and Korea, has secured a 10-year agreement with Ontario Power Generation for an annual supply of 45,000 metric tons of pellets.

OPG is phasing out the use of coal at all of its plants by 2014, in accordance with Ontario’s 2007-enacted law that bans coal power after 2014. OPG’s 211-MW station at Atikokan, Ontario, 124 miles west of Thunder Bay, is already undergoing conversion. It will become the first plant conversion in Ontario since the government mandate.

Resolute expects to begin construction of its pellet plant shortly, for completion in 2014. It will be built adjacent to the Thunderbay sawmill site and create approximately 24 new jobs when fully operational, while reinforcing the jobs of the existing 350 jobs that it already supports.