The Provincial Government is continuing to support the diversification of the forest industry with the announcement today that the Residential Wood Pellet Appliance Rebate Program will continue for another year with funding of $500,000 provided in Budget 2009.

The Residential Wood Pellet Appliance Rebate Program was launched last year to provide assistance to homeowners in purchasing energy-efficient wood pellet appliances and to support the creation of a local market for wood pellet manufacturing.

"We received a great response to the new rebate program with 308 applications submitted to us by the March 31 deadline," said the Honourable Kathy Dunderdale, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency. "This program supports our commitment to energy efficiency and conservation, as well as to the diversification and growth of our value-added forest industry."

The program provides a 25 per cent rebate on the purchase of wood pellet appliance, up to a maximum of $1,000 for a wood pellet stove and $1,500 for a wood pellet furnace. Appliances must be purchased between April 1, 2009, and March 15, 2010, to qualify for this year�s rebate. The original bill of sale and proof of installation by a certified technician must accompany all rebate applications.

"The creation of a local wood pellet market supports the province�s sawmill sector and the establishment of commercial wood pellet manufacturing operations," said Minister Dunderdale. "Government supports viable opportunities in the forest sector that will help ensure the long-term, sustainable development of our province�s significant forest resources."

Wood pellets are produced from sawdust, tree bark and planar shavings and can improve the financial position of sawmill operations through the utilization of these residues. The Residential Wood Pellet Appliance Rebate Program is part of the Forest Industry Diversification Program, originally announced in Budget 2008 to support diversification initiatives and identify new market opportunities in the forest sector.

A number of wood pellet manufacturing operations are in various stages of development around the province and local production should begin this year. Until then, wood pellets from outside sources are available at local supply stores.

Details on the rebate, program requirements and application forms can be found online at www.gov.nl.ca/nr or from wood pellet appliance vendors in the province. Background information is also available at www.gov.nl.ca/releases/2008/nr/1105n03.htm

For further information, homeowners can also call 709-637-2349.

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Media contact:

Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-8241
tracybarron@gov.nl.ca