Mackenzie, B.C.- The British Columbia Utilities Commission ("BCUC") has approved the Electricity Purchase Agreement ("EPA") between Conifex and BC Hydro as an energy supply contract.

 

Conifex President and Chairman, Ken Shields, says this decision clears the way for the next steps "We are pleased to have received approval from the BCUC. With this important milestone in place, we can now settle our budget, construction and financing plans for the Bioenergy Facility on a priority basis and work towards the re-start of our Site I Mackenzie sawmill in 2013."

The Bioenergy Facility will create approximately 80 jobs during the 15-month construction period and over 20 new jobs upon completion. The expected energy generation of approximately 230 GWh of net energy per year is enough to power 24,000 BC homes annually.

Conifex Timber Inc completed its EPA and related Load Displacement Agreement ("LDA") with BC Hydro in June 2011.

Under the EPA, the Company will supply at least  200GWh of electrical energy each year to BC Hydro over a 20-year term from its bioenergy generation plant which is currently in development adjacent to one of its sawmill complexes in Mackenzie.

Under the LDA, the Company is required to deliver 30 GWh of electrical energy annually to provide for the energy requirements of Conifex’s two Mackenzie sawmills over the term of the LDA. In exchange for the Company agreeing to make available such energy for its sawmills, BC Hydro will provide incentive funding to be utilized towards the completion of the Bioenergy Facility.

Delivery of electricity to the BC Hydro grid is expected to start in the third quarter of 2013. Once the bioenergy facility is running at full capacity, it is expected to generate more than $20 million in revenue each year.