Provincial Government extends agreement with Corner Brook Pulp and Paper Limited
The Government of Newfoundland and Labrador announced that an agreement has been extended between Newfoundland and Labrador Hydro (Hydro) and Corner Brook Pulp and Paper Limited.
The extended agreement, which became effective on October 1 for a period of six months, includes Hydro purchasing excess green energy from Corner Brook Pulp and Paper’s Deer Lake Power assets. In turn, Corner Brook Pulp and Paper will continue its efforts to identify new revenue sources from viable wood-based projects in order to unlock Newfoundland and Labrador’s high forest potential while further stabilizing the mill’s sustainability and future.
The agreement between Hydro and Corner Brook Pulp and Paper for energy generated from Corner Brook Pulp and Paper’s existing power generation facilities will provide flexibility for Hydro to draw upon when needed, particularly during winter months. There is no impact on the ratepayer as a result of the agreement.
The Provincial Government remains optimistic about the forestry industry and continues to have ongoing discussions with Corner Brook Pulp and Paper.
“Corner Brook Pulp and Paper Limited continues to play a key role in Newfoundland and Labrador’s integrated forest sector. Extending this agreement is another step towards securing the future of our forest industry and ensuring the sustainability of this vital industry” said Honourable Gerry Byrne Minister of Fisheries, Forestry and Agriculture and MHA for Corner Brook.
“Corner Brook Pulp and Paper Limited is working on identifying new revenue sources from viable wood-based projects. We support their efforts as they have been a valuable contributor to the forestry industry and our communities for many years” said Honourable Siobhan Coady Deputy Premier and Minister of Finance.
“The extension of this agreement will ensure excess energy reserves for Hydro during winter months. At the same time, CBPP will have additional time to explore opportunities for long term sustainability for employees of the mill and the forestry industry” said Honourable Andrew Parsons, KC Minister of Industry, Energy and Technology.
