Construction of the plant is scheduled to commence shortly adjacent to the company’s sawmill in Thunder Bay, Ontario and is expected to complete in 2014.
Ontario Power Generation signed a ten-year agreement with Resolute for the supply of 45,000 metric tons of pellets a year.
Resolute plans to invest $10m for the plant’s construction, adding to the company’s $120m investments for operations in Ontario since 2011.
Resolute president and chief executive officer Richard Garneau remarked that wood pellets are a clean, renewable energy source, and together with other biofuel opportunities, a natural diversification target for Resolute.
"This project provides the opportunity to enhance the use of our existing asset base to produce biofuel for a strategic, committed consumer and allows the Company to gain valuable manufacturing experience in commercial biomass production," Garneau said.
