Officials in Mackenzie County, Alberta, on Dec. 23 announced the finalization of an agreement with Calgary, Alberta-based PowerWood Canada Corp. for the development of two new black pellet plants in the region.&nbsp;PowerWood Canada in November 2025 <a href="https://biomassmagazine.com/articles/powerwood-canada-to-develop-2-black-pellet-plants">announced</a> plans to develop the facilities, which are expected to convert forest fire deadwood into a solid biofuel that can be used to replace coal in Japanese power plants. &nbsp;The proposed facilities will feature a steam explosion pellet production process developed by Valmet. According to PowerWood, three black pellet plants using the technology are already operating in France, Norway and Malaysia with additional plants under construction in both Europe and Asia.PowerWood’s first plant, referred to as the Peace River facility, is planned for development on 65 acres of land near La Crete in Mackenzie County. Construction on the 350,000-ton-per-year facility is expected to begin in spring 2026 and be complete in early 2027. Once operational, the facility will take in feedstock consisting of native dead fire-damaged timber, diseased trees and forest floor debris.&nbsp;The second facility is planned for development near High Level, a Mackenzie County town located approximately 90 kilometers (56 miles) northwest of La Crete.&nbsp;“Today, I’m pleased to announce that we’ve finalized an agreement with Calgary-based PowerWood Canada Corp. that will bring two new wood pellet manufacturing facilities to the Mackenzie County region,” said Mackenzie County Reeve Josh Knelsen in a statement released Dec. 23. “This is a leading-edge, first-of-its-kind project in Canada that turns wildfire-damaged wood into clean energy and helps reduce reliance on coal.“These two facilities represent hundreds of millions of dollars in private investment and the potential for up to 300 direct jobs, with many more across forestry, construction, transportation, and local businesses.“This project builds on the energy resources we already develop in the region, adding a new, value-added energy stream alongside our long-standing oil and gas, forestry, and agricultural sectors,” Knelsen added.&nbsp;According to Knelsen, the site of the Peace River facility is shovel-ready with services already in place. Construction is currently expected to begin in mid-2026, he added, noting the second site hear High Level will be used to ship finished product by rail, as well as a second production facility.“I also know this announcement comes at a time of uncertainty for some in our region. Recent announcements by West Fraser regarding future curtailments have raised understandable concerns for workers and families who have long been the backbone of our forestry communities,” Knelsen said. “This project does not replace those jobs overnight, but it is encouraging news and a step toward diversification and long-term resilience in our forestry economy.”&nbsp;&nbsp;

2026-01-06 - Official confirms plans for 2 black pellet plants are moving forward in Canada (Biomass Magazine)

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Officials in Mackenzie County, Alberta, on Dec. 23 announced the finalization of an agreement with Calgary, Alberta-based PowerWood Canada Corp. for the development of two new black pellet plants in the region. 

Official confirms plans for 2 black pellet plants are moving forward in Canada

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