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Groupe Lebel to build wood pellet plant in Quebec

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Groupe Lebel will build a new wood pellet plant in Quebec’s Cacouna municipality.

The first phase of the plant’s operations will begin in 2023 with an annual capacity of nearly 100,000 tonnes of wood pellets. Groupe Lebel aims to ship the majority of its production to growing international markets.

“The plant will help us optimise our growth plan,” said Louis-Frédéric Lebel, president and CEO of Groupe Lebel, “as it will give us an outlet for unsold by-products and processed wood affected by the spruce budworm.

“Further, Cacouna was a highly strategic choice of location for the future plant since it is close to the Port of Gros-Cacouna and our primary processing activities.”

Groupe Lebel acknowledged the financial contribution of nearly $15 million (€10.9 million) from key partners for this $40 million (€29.2 million) project. The Quebec Ministère de l’Économie et de l’Innovation granted the company a $12 million (€8.7 million) loan.

The Ministère de l’Énergie et des Ressources naturelles du Québec contributed $1.75 million (€1.27 million) which includes funding from Environment and Climate Change Canada. Finally, the Ministere des Forêts, de la Faune et des Parcs is contributing $1 million (€730,000) via its Innovation Bois programme.

Pierre-Olivier Morency, director of Lebel Energie, added: “The long-term market outlook in Europe is very good, especially for coal substitution. This is an environmentally sound project that both strengthens our sawmill operations and fights climate change.”

Lebel added: “We are very pleased to have entrusted the process engineering and project execution to Prodesa. This international player in the construction of wood pellet production plants builds turnkey facilities in Europe, Asia, and North America. Prodesa provides us with extensive expertise in process and performance guarantees.”