Canadian company kick-starts bioenergy plant

Vancouver-based Fortress Paper will buy a disused pulp mill in Quebec and spend $153 million (€111 million) to reopen it as a biomass plant.

A 25MW power plant fed by waste from its operations and from an extensive local network of chip and other biomass suppliers is expected to begin supplying electricity by late 2012. The company further plans to begin production of dissolving grade cellulose for the textile industry by mid-2011.

Fortress is paying $3 million for the Thurso mill, closed by owner Fraser Papers in June 2009, days before it filed for bankruptcy protection amid a forest industry crisis.

Months later, the Quebec government announced that the site was approved for a cogeneration plant, paving the way for a $102.4 million loan to Fortress from Investissement Quebec for the project.

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