Canfor signs deal with Peak Renewables to sell Fort Nelson forest tenure
In Canada, forest industry major Canfor Corporation (Canfor) has announced that it has reached multi-year CA$30-million agreements with Peak Renewables involving the sale of the company’s forest tenure in the Fort Nelson region of British Columbia (BC).
According to a statement, the transactions are subject to customary closing conditions, including approval from the BC Minister of Forests. Closing is expected to occur in the first quarter of 2021.
The agreements follow Peak Renewables’ purchase of Canfor’s Fort Nelson mill assets in the third quarter of 2020.
I am pleased to have reached an agreement to sell our Fort Nelson tenure to Peak Renewables, a company that is committed to developing a long term plan to rejuvenate the forest industry in the region, said Don Kayne, President, and CEO, Canfor.
State-of-the-art pellet plant plans
Based in Cranbrook, BC, Peak Renewables is partnering with the Northern Rockies Regional Municipality to develop a 600 000 tonnes-per-annum wood pellet plant in Fort Nelson.
The pellet plant will be powered hydro and according to the company, is designed with state-of-the-art equipment from Europe to maximize output, reduce energy requirements, and emissions of particulate matter to exceed best practices in wood pellet production.
Targetting overseas markets in Japan, South Korea, and Europe, production is planned to be railed to Vancouver for overseas shipment.
Unutilized hardwood fibre
The plant will use hardwood fibre considered uneconomic for other wood products, in addition to forest site residuals. In collaboration with First Nations partners, forest management best practices include long-term harvest agreements and land management frameworks.
As a forest tenure holder Peak Renewables will be certified with the Sustainable Forestry Initiative (SFI) Certification program and aims to achieve the Programme for the Endorsement of Forest Certification (PEFC) Chain of Custody (COC) standard.