Quebec pellet plant gets start-up funds

June 2, 2010, Mashteuiatsh, QC – Granules LG international Inc. has been awarded $2,560,000 in repayable funding for the start-up of a wood pellet pilot plant in Mashteuiatsh, Quebec. Indian and Northern Affairs Canada is also supporting the project with a $744,188 financial contribution.

Granules LG international Inc. will specialize in the manufacture of wood pellets from forest waste, mainly for export. The pilot plant will operate at an annual production capacity of 80,000 tonnes. If the results prove conclusive, the facility will proceed from the pilot stage to the industrial stage, producing some 400,000 tonnes/year of pellets.

“The Granules LG international project will translate into the creation of 25 permanent jobs in Mashteuiatsh and another 50 local indirect jobs, as well as the investment of $8.1 million in the community. It goes without saying that this is good news for the Innu community, which has also been hit by the forest crisis and plant closings in neighbouring RCMs. Moreover, the new plant will specialize in the wood processing sector, an area identified by Canada Economic Development’s Saguenay–Lac-Saint-Jean business office as a priority for the region’s economy. That is why we have decided to lend our financial support to the establishment of this industrial facility which, we are convinced, will open up highly promising opportunities for development,” explains the Honourable Denis Lebel, minister of state for Canada Economic Development.

“I am pleased to announce this first-ever direct contribution from the Government of Canada to a First Nation for a major renewable energy project in eastern Canada,” says Chuck Strahl, minister of Indian and northern affairs Canada. “In acquiring this wood pellet pilot plant, the Innu community of Mashteuiatsh is clearly showing both its determination to stimulate the local economy and its capacity to forge effective and prosperous partnerships.”

The funding from Canada Economic Development has been awarded through the Business and Regional Growth program, an initiative designed to strengthen the conditions conducive to the sustainable growth of Quebec’s regions and small and medium-sized businesses. The program’s aim is to help enterprises improve their performance, become more competitive, engage more heavily in innovation and develop new markets.