Canfor Pulp's proposal to build a bioenergy project at its Northwood Pulp mill and generate electricity for BC Hydro has failed to make the grade.
After making the list of eight "preferred proponents" earlier this eyar, the proposal was not among the four Hydro said Friday would receive offers to purchase electricity and Canfor Pulp spokesman Duncan Scott confirmed the Northwood proposal was not selected.
"But we continue to enjoy a good relationship with Hydro and we think there is lots of opportunity in energy as a new part of our business," Scott said.
Scott declined to provide further details on the proposal, citing competitive reasons.
In an interview in February, Canfor Pulp vice-president of operations Brent Robinson said the project contemplated a stand-alone boiler and turbo-generator that would be fired with wood residuals and cost $150 million. He also said Canfor Pulp and Hydro are far from reaching a deal and were in detailed discussions on what make sense.
The latest development puts the project on the shelf.
"The project won't go ahead under the equation of being able to sell power to Hydro," Scott said. "How else it might go ahead, I don't know."
He said Canfor Pulp does continue to sell power to Hydro under separate call concluded in 2008.
Canfor Pulp remains in the midst of a separate $100-million upgrade of the recovery boilder at the Northwood mill, the largest of a handful of projects funded by a federal subsidy program and
Some preliminary work has been undertaken but the bulk of the construction is planned for the months of August and September in 2011 during a plant shut down.
