Conifex finances $79 million bioenergy plant
May 26, 2012, Mackenzie, BC - Conifex has committed $72 million for its planned power co-generation plant in Mackenzie, plus $7 million in contingency funding for a total of $79 million, according to the Central Interior Logging Association.
The company has inked a 20 year agreement with BC Hydro to supply the utility with excess power while also receiving millions in exchange for the Mackenzie mill complex.
Conifex CEO Ken Shields says, "we are entitled to receive approximately 13 million dollars in grants from BC Hydro, in exchange for relieving BC Hyrdro of the obligation to provide electricity to our Mackenzie sawmill for a period of 20 years."
The total projected cost of the upgrade project is now 79 million dollars, substantially more than the 60 million or so originally estimated. Shields says the higher cost is in part due to fixed rate financing for the project which is more expensive, but provides more certainty. The plant should be online by next September.