Pacific BioEnergy is restarting a sawmill in northwest B.C. on Monday, a planned precursor to building a new wood pellet mill near the site.
The pellet plant is meant to be modeled on Pacific BioEnergy's existing operation in Prince George, which uses residuals from sawmills like wood shavings and sawdust, and logging waste, to manufacture wood pellets, said company vice-president Brad Bennett.
The soon-to-be-opened sawmill in Kitwanga is meant to provide the raw waste material for the pellet plant, which is still in the midst of site selection and engineering.
"We are still pretty focused on bringing [the pellet plant] together. The timing we're not real firm on yet, but we're spending money to make it happen," said Bennett.
The wood pellet plant, if it's built at Kitwanga, 480 kilometres west of Prince George, would be the seventh pellet plant in northern B.C.
There are also wood pellet plants in Quesnel, Strathnaver, Vanderhoof, Houston and Burns Lake.
Most pellets produced in northern B.C. are exported overseas, to satisfy a demand for low-carbon energy. Wood pellets are considered a green source of energy because they come from forests that will be re-grown, making them a more carbon-neutral fuel source.
Wood pellets are made from residual wood like dry shavings, sawdust and even bark. Historically, the residuals have come from sawmills, but more recently, they also include the left-overs from logging.
The sawmill start-up in northwest B.C. is also significant because it will be only the second manufacturing facility to operate in a vast area west of Smithers following a series of mill closures in the past decade.
There are no large operating sawmills in the area, and West Fraser's linerboard plan in Kitimat, which employed more than 500 people, was shut down last year.
The Kitwanga sawmill, purchased by Pacific Bioenergy in 2009 out of receivership, will employ 45 people on a one-shift basis. The only other operating mill in the area is a small venture producing railway ties.
Bennett said Pacific BioEnergy is excited about re-opening a mill in an area hit hard in recent years by closures. He noted the community already held a celebration to mark the re-opening of the mill.
He said he also hopes the pellet plant will fill the role that pulp and paper mills did in the past, creating an economic use for wood waste.
