Utility-scale biomass project in Saskatchewan announced

Multinational paper giant, Paper Excellence, will purchase the Prince Albert, Saskatchewan pulp mill from Domtar and invest $200 million CAD to re-open the facility. As part of the agreement SaskPower (the electrical utility in the Canadian province of Saskatchewan) will purchase surplus electricity from a biomass power facility to be incorporated into the mill. That agreement calls for the purchase of biomass power at a price consistent with rates charged for this kind of project. Additional details are not available about the biomass project but it is certain to be an exciting project as it will be one of the first large utility-scale biomass projects in Western Canada. The deal was just announced this morning and is expected to close in the second quarter of 2011.