Mackenzie, B.C.- Conifex has announced it is working towards a bioenergy project worth $45 million at its Mackenzie sawmill.

 

The bioenergy plant is slated to start commercial production of electricity in the summer of 2012.

 

In connection with the Bioenergy Project, Conifex has entered into arrangements with Dresser-Rand Canada, Inc. for the manufacture and purchase of a 36 MW steam turbine generation set (the "Turbine"). The total cost of the Turbine and ancillary equipment and services is approximately U.S. $10.5 million. The Bioenergy Project is expected to generate approximately 230 GWh of net energy per year.

Conifex is in discussions with BC Hydro in connection with a proposed energy purchase agreement and with respect to establishing energy savings arrangements at its Mills. Those agreements and arrangements will be subject to regulatory approval.

 

Waste fibre from Conifex's sawmilling and timber harvesting operations will be used to fuel the bioenergy plant, which in turn will supply power to its sawmills and for potential sale to BC Hydro. In addition, the extraction of the Turbine has been sized to accommodate future lumber drying requirements of the Mackenzie operations.

Mr. Ken Shields, President and Chairman, commented: "We are very excited to add clean energy generation to our timber harvesting and lumber manufacturing operations. The development of bioenergy in conjunction with our traditional operations will diversify existing revenue sources, counteract some of the volatility inherent in the commodity lumber sector, and provide additional stable employment opportunities within the community of Mackenzie."

Without a firm agreement in place and without approval from the BC Utilities Commission, there is always a possibility the project may not go ahead as described, or at all.