Canadian Biomass Magazine

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Timberlands International to open $19.7M wood pellet plant in Hawke’s Bay

Nov. 30, 2018 – Timberlands International Inc., a subsidiary of Active Energy Group (AEG), has received two five-year commercial cutting permits to harvest 100,000 m3 annually on the Great Northern Peninsula.


November 30, 2018
By Ellen Cools
Ellen Cools

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This will support the operation of a new $19.7M wood pellet plant in Hawke’s Bay, N.L. AEG’s external investors will provide funding to build the proposed plant.

According to a news release, the cutting permits stipulate that 25 per cent of the harvest be made available to commercial sawmills for first right of refusal. “Wood fibre requirements of 148,000 m3 would be provided via the cutting permits and by purchase from existing forest operators,” the release says.

The Hawke’s Bay plant will produce 55,000-65,000 metric tonnes annually of CoalSwitch wood pellets to be exported to Poland. AEG has agreed to provide wood pellets to Cobant, a Polish research, development and coal recovery/production company, to supplement coal use in Poland’s residential heating market.

The company predicts the plant will result in 25 new full-time jobs in plant operations, as well as 30-50 positions in harvesting and trucking.

“This agreement is a significant achievement for the company and for the Province of Newfoundland and Labrador, and will reap rewards for all parties in the years to come. We look forward to becoming part of the community on the Great Northern Peninsula and working with stakeholders to provide positive economic opportunities as we rebuild this important industry together,” said Richard Spinks, managing director, Timberlands International.