Government support for Hornepayne cogeneration plant

September 19, 2013, Hornepayne, ON – The Ontario
government announced that it has
provided financial support for a bio-energy project at the Olav Haavaldsrud
Timber Company Ltd. in Hornepayne.

The 10-megawatt Becker Cogeneration Plant will use sawmill
wood by-products to generate electricity for the provincial power grid and
produce heat for nearby sawmill and kiln operations. The plant will consume
175,000 to 200,000 tonnes of sawmill wood by-products annually.

Ontario’s support for this project includes a conditional
grant of $11.867 million through the Forest Sector Prosperity Fund, a
$17.8-million loan guarantee through the Forest Sector Loan Guarantee
Program, and $1 million from the Northern Ontario Heritage Fund Corporation.

The $66-million cogeneration facility is next to existing
lumber-manufacturing facilities, creating 20 new jobs, saving 100 more at a
nearby mill and supporting an estimated 40 indirect jobs in collecting forest
biofibre.

The financial support provided is part of the
government's Growth Plan
for Northern Ontario, which works with different industries to
provide more opportunities for jobs and economic prosperity in northern
Ontario.

Olav Haavaldsrud Timber Company Ltd. is the second-largest
employer in Hornepayne, which is located approximately 400km north of Sault
Ste Marie.