The Provincial Government is supporting the establishment of an exciting new industry in Newfoundland and Labrador with its investment of $500,000 to provide a 25 per cent rebate to homeowners on the purchase price of an energy-efficient wood pellet appliance in preparation for winter.

"The purpose of the rebate program is to create a local market to enable sawmills in the province to diversify into wood pellet manufacturing by utilizing their sawmill residues," said the Honourable Kathy Dunderdale, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency. "The rebate program is part of our government�s commitment to identifying and supporting viable, sustainable forest sector opportunities in our rural communities. It also assists residents to reduce energy consumption and lower their energy costs."

The 25 per cent rebate is available to all eligible Newfoundland and Labrador homeowners purchasing the appliances between April 1, 2008 and February 28, 2009. Proof of installation is required to receive the rebate. The deadline to submit the necessary documents to receive the rebate this fiscal year is February 28, 2009. The original bill of sale and proof of installation by a certified technician must accompany all rebate applications.

Anyone purchasing a wood pellet appliance prior to February 28, 2009 will still be eligible for the rebate beyond that date once proof of installation is provided. The appliance, however, must be purchased prior to February 28, 2009 to qualify.

"Producing wood pellets from sawdust, tree bark and planar shavings will improve the financial position of sawmill operations," said Minister Dunderdale. "The rebate will help grow this industry and create employment opportunities in rural communities, while assisting homeowners in their shift to a cleaner, more efficient source of heat and therefore lowering their energy costs."

Homeowners meeting the program requirements will receive a 25 per cent rebate on the cost of purchasing a new wood pellet stove or furnace, up to a maximum of $1,000 for a wood pellet stove and $1,500 for a wood pellet furnace.

The Residential Wood Pellet Appliance Rebate will boost the province�s sawmill industry and further demonstrates government�s commitment to expanding and diversifying the industry through investment in strategic areas. Budget 2008 committed $14 million for the forest sector for initiatives to identify and develop specific new products and market opportunities.

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• The Residential Wood Pellet Appliance Rebate is part of the $14-million Forest Industry Diversification Program announced in April to support diversification initiatives in the forest sector and identify new market opportunities.

• Research indicates that the best opportunity for establishing a wood pellet industry in the province initially is to develop local markets. As pellet production increases, additional markets can be developed.

• Wood pellets are currently imported from outside the province. The first pellet facility in this province is expected to begin producing pellets within weeks at Cottlesville. Another plant at Bishop�s Falls is in the development stage and is scheduled to begin producing early in the new year.

• The rebate program is consistent with the Energy Plan. As stated in the Energy Plan, the Provincial Government will encourage reductions in energy consumption through conservation and increased efficiency. This is one of a series of initiatives targeted at increasing energy conservation awareness and efficiency.

• The Provincial Government is investing $500,000 this year for the Residential Wood Pellet Appliance Rebate. A 25 per cent rebate is available to all eligible Newfoundland and Labrador homeowners purchasing the appliances between April 1, 2008 and February 28, 2009. Proof of installation by a certified technician is required.

• The deadline for the receipt of all applications is February 28, 2009. Applications must be accompanied by the original bill of sale and proof of installation by a certified technician.

• The availability of pellet furnaces is limited in the province currently, however, the appliances can be ordered and a number of heating suppliers plan to stock the appliances in 2009.

• Anyone purchasing a wood pellet appliance prior to February 28, 2009 will still be eligible for the rebate beyond that date once proof of installation is provided. The bill of sale must be dated prior to February 28, 2009 to qualify. The continuation of the program beyond this year will be considered as part of the 2009 budgetary process.

• The cost of a wood pellet stove ranges from $1,500 to $4,500. Pellet furnaces cost in the range of $7,000 to $12,000.