NB Power has confirmed it will proceed with converting its Belledune Generating Station to sustainably sourced advanced wood pellets, entering a long-term biomass supply agreement with the Belledune Joint Venture.
The agreement brings together a strong partnership: Pabineau First Nation, Eel River Bar First Nation, Arbec Forest Products and Airex Energy, working alongside the Port of Belledune within its Green Energy Hub.
Together, the partners are developing a facility expected to produce up to 150,000 tonnes of torrefied pellets annually, representing an investment of approximately $100 million and what the partners describe as North America's first facility to produce advanced pellets at industrial scale.
The project stands out not only for its scale but for the breadth of value it is designed to deliver. By transforming forestry harvest residues and sawmill by-products into high-value torrefied fuel, the facility creates a genuine bridge between New Brunswick's forestry and energy sectors — diversifying markets for forest products and maximising the value extracted from every tree harvested, in line with circular economy principles.
The project is expected to cut greenhouse gas emissions by at least 220,000 tonnes annually — equivalent to taking more than 73,500 cars off the road — while also significantly reducing sulphur, nitrogen dioxide, ash, heavy metals and PAH emissions compared with coal combustion.
The project is expected to create 75 direct jobs at the facility and across the forestry sector, while helping sustain more than 325 additional forestry jobs — a combined direct and indirect employment impact of around 400 positions.
By drawing on local suppliers, contractors and service providers across forestry, transportation and energy, the project is also set to generate lasting value for communities across Northern New Brunswick.
The initiative further represents a model for Indigenous partnership in Canadian energy development. Chief Terry Richardson of Pabineau First Nation highlighted the significance of equity ownership for a small First Nation community: "This project is and will be the first in North America that produces advanced pellets at industrial scale. This reflects our vision of moving towards the conversion to get the Belledune power plant off coal and reducing our carbon footprint. We believe that partnership is the key to success and the opportunity for us to become equity owners in this project shows the ability for even our small First Nation community to be an economic leader."
Chief Chris George of Eel River Bar First Nation echoed that enthusiasm: "Ugpi'ganjig is excited for this important milestone in this joint venture project. We look joyfully to continuing this journey together with our partners as we move forward in shared prosperity and future growth."
For Airex Energy, the agreement represents years of sustained technical development paying off at genuine scale. Michel Gagnon, CEO of Airex Energy, said the milestone validates nearly a decade of work refining the company's CarbonFX torrefaction technology: "Today's announcement demonstrates the potential of torrefied pellets as a practical and scalable solution for reducing emissions from coal-fired generation. Since 2016, Airex Energy has been operating and perfecting its CarbonFX technology to help accelerate the transition to lower-carbon energy systems. We are proud to see a Canadian technology playing a key role in supporting New Brunswick's energy security and reducing reliance on imported coal. The Belledune Project represents a major step forward for the commercialisation of torrefied biomass and demonstrates how Canadian technology can contribute to both clean energy and climate objectives."
Arbec Forest Products, supplying the forestry residues and sawmill by-products that will feed the facility, underlined its long-term commitment to the project. Adam Stone, VP Operations at Arbec Forest Products, said: "We believe the project represents an important opportunity to advance innovation, sustainability, and long-term value within the forest products sector by creating a new, long-term market for forestry harvest residues and sawmill by-products. Arbec remains dedicated to providing the collaboration, expertise, and support required to move the project forward responsibly."
For the Port of Belledune, the agreement also marks a significant step in establishing the port as a hub for clean energy investment. Denis Caron, CEO of the Port of Belledune, said the project reinforces the port's broader ambitions: "The Belledune Torrefied Pellet Project demonstrates how our existing infrastructure and strategic location can support new clean energy industries and create strong economic opportunities for Northern New Brunswick. By bringing together industry, Indigenous partners, utilities and governments, this initiative strengthens the Port's role as a catalyst for sustainable industrial development and reinforces our ambition to position Belledune as a leader in the emerging low-carbon economy."
