Skeena, PacBio announce long-term off-take agreement

Skeena Sawmills, Pacific BioEnergy
February 04, 2019
Written by Skeena Sawmills, Pacific BioEnergy
Pellets are loaded into a rail car at Pacific Bioenergy’s pellet plant in Prince George, B.C.
Pellets are loaded into a rail car at Pacific Bioenergy’s pellet plant in Prince George, B.C.
Feb. 4, 2019 - Skeena Sawmills Ltd. and Pacific BioEnergy Corporation (PacBio) have entered into a long-term off-take agreement for wood pellets. Under the terms of the agreement, PacBio will purchase all of the pellets produced at Skeena Sawmills’ new, state-of-the-art pellet plant, in support of PacBio’s long term supply agreements with power producers in Japan.

Skeena’s pellet plant is built adjacent to its sawmill in Terrace, B.C., and will commence production in Q1 2019.

“Skeena’s pellet plant provides a critical outlet for residual fibre from the sawmill and builds on our commitment to maximizing value from the forest resource and generating local jobs from local logs in Northwestern British Columbia,” said Rick Harris, vice-president of sales and marketing for Skeena Sawmills. “Our $20-million investment to build a pellet plant, combined with this long-term strategic partnership with PacBio to serve international markets for bioenergy, supports the sustainability of both our business model and the regional forest economy.”

Commenting on the agreement, John Stirling, president of PacBio said, “This agreement with Skeena Sawmills contributes to our growing presence serving Japan’s demand for bioenergy products and advances our vision of bringing greater value to B.C.’s forest industry. I want to thank Paul Kalil, PacBio’s VP of corporate development, and Rick for leading the development of this agreement. We look forward to further developing our relationship with Skeena.”

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