Company interested in producing wood pellets at the old Grand Falls-Windsor mill
May 16th, 2012 | Posted in Biomass | No comments »
Newfoundland and Labrador‘s Minister of Natural Resources, Jerome Kennedy, is confirming that a company is interested in purchasing the old AbitibiBowater mill in Grand Falls-Windsor.
Kennedy would not specify who the company was, or where they were from, but he did say that the company is interested in acquiring part of the property to produce wood pellets for home heating.
The Grand Falls-Windsor mill has been closed for 3 years. The province assumed custody and management of the mill after expropriating the timber and water assets from AbitibiBowater.
This is not the first time a company has been interested in the mill. In 2010, Lott Paper from Germany was interested in the mill, but the plan fell apart when Lott Paper declared bankruptcy just days later.
The environmental cleanup of the site has yet to be carried out. The cleanup is estimated to cost more than $100 million. The Supreme Court of Canada will be deciding if the provincial government will be responsible for paying for the cleanup, or if AbitibiBowater will be on the hook for the costs.
Premier Kathy Dunderdale has said a future operator of the mill shouldn’t have to pay for the environmental cleanup. She told the legislature that “the business case, what we are trying to do is encourage another use for that facility in Grand Falls, something hopefully to do with the forestry industry. We are going to make that as attractive as we can based on a cost-benefit analysis to the people, particularly of the central part of the province. At the end of the day we are left with the responsibility, unless the Supreme Court of Canada rules something different, and the site will be cleaned up eventually.”
Source:
Company eyeing former mill site in Grand Falls-Windsor (CBC)




