Canadian Biomass Magazine

Conifex Timber pursues bioenergy project

March 10, 2011
By Conifex Timber


Conifex Timber pursues bioenergy project
Conifex Timber has initiated an approximately $ 45-million bioenergy generation project at its Mackenzie, British Columbia, sawmill site.

Mar. 10, 2011, Vancouver – Conifex Timber
has initiated an approximately CAD $45-million bioenergy generation
project at its Mackenzie, British Columbia, sawmill site, scheduled for commercial production of
electricity in the summer of 2012. In connection with this bioenergy
project, Conifex has entered into arrangements with Dresser-Rand Canada for the
manufacture and purchase of a 36-MW steam turbine generation set. The
total cost of the turbine and ancillary equipment and services is approximately
USD $10.5 million. The bioenergy project is expected to generate
approximately 230 GWh/year of net energy.

Conifex is in discussions with
BC Hydro in connection with a proposed energy purchase agreement and with
respect to establishing energy savings arrangements at its mills. Such
agreement and arrangements, if completed, will be subject to regulatory

The biomass power generation segment will
complement Conifex's existing woodland operations and lumber manufacturing
business. Waste fibre from Conifex's sawmilling and timber harvesting
operations will be used to fuel the bioenergy plant, which will supply power to
its sawmills and potentially for sale to BC Hydro. In addition, the
extraction of the turbine has been sized to accommodate future lumber drying
requirements of the Mackenzie operations.

Mr. Ken Shields, president and chairman,
commented, "The development of bioenergy in conjunction with our
traditional operations will diversify existing revenue sources, counteract some
of the volatility inherent in the commodity lumber sector, and provide
additional stable employment opportunities within the community of


As no agreement has yet been reached, and
as any such agreement would be subject to regulatory approval, there can be no
assurance that the project will proceed as currently described or at all. To
provide necessary flexibility, the turbine acquisition agreement contains
cancellation rights in favour of Conifex that may be exercised if the project
does not proceed.

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