$5.3M for bio pellet plant

Ontario company's plant will be Canada's largest and will add about $60 million into the area economy and consume about 600,000 tonnes of wood fibre

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Posted By Greg Peerenboom -- The Cornwall Standard Freeholder

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The chips are falling into place for a new bio pellet plant in Ingleside.

Canadian Bio Pellet was awarded a $5.3 million grant from the provincial Ministry of Northern Development, Mines and Forestry during a Tuesday announcement by MPP Jim Brownell.

"This will help us stabilize our company by reducing our debt-load," said Dan Stasko, CEO of Canadian Bio Pellet (CBP).

While the cash injection won't add positions right away to the estimated 90 jobs at CBP, he admitted, there are other advantages.

"This will directly increase research and development and help with creating scholarships so students can work directly in the industry," said Stasko, who was accompanied by his brother and company president, Stan, to the announcement.

He said the CBP's better financial books will give extra protection for the new jobs in the future.

R&D will eventually produce new products and techniques that will help CBP expand its market into green energy opportunities, Stasko said.

At full capacity, CBP, the country's largest bio pellet plant, will add about $60 million into the area economy and consume about 600,000 tonnes of wood fibre from various sources, including local woodlots.

The fibre, from wood chips, sawdust and shavings, will be converted into biomass pellets to fuel the increasingly larger North American and European markets.

Construction is expected to begin in March and be completed by spring 2011.

There will be also be significant spin-off employment in trucking and wood harvesting, said Brownell.

The MPP, a former educator, recalled that cutting-edge energy sources, such as bio pellets, were topics he taught to students many years ago.

He said it's partly why the provincial government plans to spend $1 billion over five years to provide new opportunities for the hard-hit forestry sector. The Forest Sector Prosperity Fund and Loan Guarantees have attracted more than $848 million in new private sector investment.

"We need to find other uses for fibre," Brownell said, citing the under-utilized supply after the closing of Domtar in 2006.

He said the pellets could also be used to refuel the huge coal-powered electricity plants in the province.

The plant's operation could eventully include a co-generation facet, Stasko said, allowing it to provide energy to neighbouring buildings.

Stasko credited Brownell, the ministry of forestry and South Stormont Township for efficiently moving the project ahead, which convinced the Staskos that Ontario was a better location than a possible site in New Brunswick.

Forestry Minister Michael Gravelle was expected to attend the announcement, but he cancelled due to illness.

"Our government is working hard to restore the competitiveness of the forest sector and help the communities that depend on it," Gravelle said in a statement.

Announcement emcee, South Stormont Mayor Bryan McGillis, also credited his staff for moving the project forward and thanked Brownell for pulling the strings at Queen's Park.

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Web Site: http://www.standard-freeholder.com/ArticleDisplay.aspx?e=2268372

Category: Forestry>Wood Pellets

Region: Ontario, Canada

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