In Canada, the partners of the Belledune Joint Venture (working name) have welcomed NB Power's decision to proceed with the conversion of the Belledune Generating Station (Belledune GS) to torrefied wood pellets made from sustainably sourced forest residues and to enter into a long-term biomass supply agreement with the joint venture. In a joint statement the partners applaud this expression of confidence from NB Power.
This decision paves the way for the continued development of the Belledune JV project, a partnership between the Pabineau First Nation, the Eel River Bar First Nation, Arbec Forest Products Inc., and Airex Energy Inc.
The Pabineau First Nation is pleased to partner on this project alongside the Eel River Bar First Nation, Airex Energy, Arbec, and the Port of Belledune. This project will be the first in North America to produce torrefied wood pellets on an industrial scale. It reflects our vision of moving towards converting the Belledune generating station to coal-free and reducing our carbon footprint. We believe that partnership is the key to success, and the opportunity for us to become co-owners of this project demonstrates that even our small First Nations community can play an economic leadership role. We look forward to seeing this project take shape, said Chief Terry Richardson, Pabineau First Nation.
Located at the Port of Belledune, within its Green Energy Hub, the proposed facility will transform sustainably sourced forest residues into torrefied pellets to support the conversion of the Belledune GS, thereby helping to maintain significant production capacity for New Brunswick.
The proposed facility is expected to produce up to 150,000 tonnes of torrefied pellets per year and represents an investment of approximately CA$100 million.
Today’s announcement demonstrates the potential of torrefied biomass pellets as a concrete and scalable solution for reducing emissions associated with coal-fired power generation. Airex Energy has been actively involved in this initiative for the past two years and wishes to thank its partners and stakeholders for their outstanding contribution. Since 2016, Airex Energy has been operating and refining its CarbonFX technology to help accelerate the transition to lower-carbon energy systems. We are proud to see a Canadian technology playing a key role in supporting New Brunswick’s energy security and reducing its reliance on imported coal. The Belledune project represents a major step forward in the commercialization of torrefied biomass and demonstrates how a Canadian technology can contribute to both clean energy and climate goals. NB Power and the Government of New Brunswick are clearly leading the way in this energy transition, both here and globally, said Michel Gagnon, CEO, Airex Energy.
Bridge forestry and energy sectors
Beyond its role in the conversion process, this initiative represents an innovative opportunity to bridge two sectors essential to New Brunswick’s economy: forestry and energy.
By using forest harvesting residues and sawmill by-products as raw materials, the project supports the long-term vitality of the forestry sector and its supply chain, helps diversify markets for forest products, and maximizes the value derived from each harvested tree, in accordance with the principles of the circular economy.
Arbec Forest Products wishes to emphasize and reaffirm its unwavering commitment to the Belledune torrefied wood pellet project and to its valued partners, the Pabineau First Nation, the Eel River Bar First Nation, and Airex Energy, who are working with us in conjunction with the significant support of the Port of Belledune. We believe this project represents a significant opportunity to advance innovation, sustainability, and long-term value creation in the forest products sector by creating a new, long-term market for forest harvest residues and sawmill by-products. Arbec remains committed to providing the collaboration, expertise, and support necessary to move the project forward responsibly, while maintaining open communication and strong, respectful relationships with all partners and stakeholders, as we work to contribute to the province’s energy transition. We are grateful for the collaborative efforts of New Brunswick and NB Power. We look forward to continuing this joint effort and achieving our collective goals together, said Adam Stone, VP Operations, Arbec Forest Products.
The project will also play an important role in New Brunswick’s energy transition by providing locally produced renewable fuel to support the decarbonization of the province’s electricity sector and the transition away from coal-fired power generation.
Current estimates indicate that the project is expected to reduce greenhouse gas (GHG) emissions by at least 220,000 tonnes per year, as per the Natural Resources Canada (NRCan) Greenhouse Gas Emissions Equivalency Calculator (June 2026), while also significantly reducing other emissions, including sulfur, nitrogen dioxide, ash, heavy metals, and polycyclic aromatic hydrocarbons (PAHs).
The project is expected to create 75 jobs at the mill and in the forestry sector, in addition to supporting over 325 existing jobs in the industry.
In total, it will help create or maintain approximately 400 direct and indirect jobs. By engaging local suppliers, contractors, and service providers in the forestry, transportation, and energy sectors, it will generate lasting benefits for communities in the region.
Today’s announcement represents a significant milestone not only for this project, but also for the ongoing development of the Belledune Port Green Energy Hub. The Belledune torrefied pellet project demonstrates how our existing infrastructure and strategic location can support new clean energy industries and create strong economic opportunities for northern New Brunswick. By bringing together industry, Indigenous partners, utilities, and governments, this initiative reinforces the Port’s role as a catalyst for sustainable industrial development and confirms our ambition to position Belledune as a leader in the emerging low-carbon economy, said Denis Caron, CEO, Port of Belledune.
Shared commitment
At the heart of the Belledune JV initiative is a shared commitment to sustainable environmental management, economic development, long-term value creation for local communities, and energy security and sovereignty.
By bringing together Indigenous communities and industry partners, it demonstrates how collaboration can support a more sustainable and prosperous future for New Brunswick.
Ugpi’ganjig welcomes this important milestone in our joint venture project. We look forward to continuing this collaboration with our partners as we move forward together towards shared prosperity and sustainable growth, said Chief Chris George, Eel River Bar First Nation.
