<article><p class="lead">Canadian biomass developer Peak Renewables is planning to build a 600,000 t/yr wood pellet production plant in Fort Nelson, northern British Columbia (BC), targeting start-up in the first quarter of 2022.</p><p>Peak Renewables reached an agreement earlier this month to purchase Canadian lumber firm Canfor's assets and associated forest tenure in Fort Nelson. The facilities include two timber processing plants — the PolarBoard-oriented strand board unit, idled in 2008, and the Tackama plywood plant, which was shut down in 2008. The purchase is expected to close in the first quarter of 2021, Canfor said.</p><p>When operational, the plant's output will be transported by the Canadian National rail link to the BC port of Vancouver for export.</p><p>Peak Renewables plans to use a broad range of wood fibre and forest residues for production. It noted that the forest bordering Fort Nelson has not been commercially harvested since 2008.</p><p>A downturn in the lumber market drove sawmill <a href="https://direct.argusmedia.com/newsandanalysis/article/1988203">curtailments</a> and shutdowns over the past few years, and the Covid-19 pandemic forced more closures <a href="https://direct.argusmedia.com/newsandanalysis/article/2092470">earlier this year</a>. These have been particularly acute in BC, prompting Canadian pellet producers to diversify their raw material supply beyond typical sawmill residues.</p><p>Peak Renewables is in the process of speaking to several potential customers, the firm told <i>Argus</i>.</p><p class="bylines"><i>By Georgia Gratton</i></p></article>
