The Honourable Gerry Byrne, Minister of Fisheries and Land Resources, and the Honourable Christopher Mitchelmore, Minister of Tourism, Culture, Industry and Innovation and MHA for St. Barbe – L’Anse aux Meadows, provided details today on a new biofuel plant that will help revitalize the forest industry on the Great Northern Peninsula.
The Provincial Government has issued two five-year commercial cutting permits to Timberlands International (Newfoundland and Labrador) Inc., a subsidiary of Active Energy Group (AEG) Plc., totalling 100,000 m3 annually (500,000 m3 over five years) in Forest Management Districts 17 and 18 on the Great Northern Peninsula.
The permits will support operation of a $19.7 million-wood pellet plant to be constructed in Hawke’s Bay. All funding for the proposed plant will be provided by AEG’s external investors.
A condition of the cutting permits is that 25 per cent of the harvest be made available to commercial sawmillers for first right of refusal. Wood fibre requirements of 148,000 m3 would be provided via the cutting permits and by purchase from existing forest operators.
The proposed plant will produce 55,000-65,000 metric tonnes of CoalSwitch wood pellets per year for export to Poland through the local port. The company has an agreement with Cobant, a Polish research, development and coal recovery/production company, to provide wood pellets to supplement coal use in Poland’s residential heating market.
The project is expected to create at least 25 full-time positions associated with plant operations, and 30-50 positions in harvesting and trucking.
Support for this project delivers on commitments in The Way Forward to strengthen the province’s economic foundation. The Way Forward outlines all actions the Provincial Government is taking to achieve a strong, diversified province with a high standard of living, and can be viewed at thewayforward.gov.nl.ca.
Quotes
“As part of the Way Forward, the Provincial Government has made a commitment to increase timber allocations and harvest levels by 20 per cent by 2020, and to work with industry to build partnerships and identify innovative ways to best utilize Newfoundland and Labrador’s forest resource. By issuing these permits, we are on the path to revitalizing the Great Northern Peninsula’s rich and storied industry and the treasured resource that sustains it to support a better future for Newfoundland and Labrador.”
Honourable Gerry Byrne
Minster of Fisheries and Land Resources
“This marks the beginning of exciting times for the Great Northern Peninsula. As Timberland’s plan unfolds, with it will come jobs and investment that will benefit communities in our region and the province. I look forward to a productive relationship with the company and continuing to support and attract sustainable investment that will provide the Great Northern Peninsula with long-term benefits.”
Honourable Christopher Mitchelmore
Minister of Tourism, Culture, Industry and Innovation and MHA for St. Barbe – L’Anse aux Meadows
“This agreement is a significant achievement for the company and for the Province of Newfoundland and Labrador, and will reap rewards for all parties in the years to come. We look forward to becoming part of the community on the Great Northern Peninsula and working with stakeholders to provide positive economic opportunities as we rebuild this important industry together.”
Richard Spinks
Managing Director, Timberlands International Ltd.
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Cutting Permit Allocation Policy
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Media contacts
Linda Skinner
Fisheries and Land Resources
709-637-2284, 637-8167
lindaskinner@gov.nl.ca
Erin Sulley
Government Members Office
709-729-5036
erinsulley@gov.nl.ca
Richard Spinks
Timberlands International Limited
+380 663343722
RGS@aegplc.com