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Pellet plant proposed for the Hazeltons

A COMPANY which tried but failed to establish a pellet-producing plant using local fibre in the Terrace area now has its sights set on a location in the Hazeltons.

This time Global Bio Coal Energy of Vancouver will supply the technology and expertise for a plant to be owned by a combination of Hazelton-area First Nations and Korean interests.

The intent is to build a $26 million facility at the old Carnaby mill site to turn fibre from the area into pellets for export to Korea, a press release from Global indicated this morning.

Sufficient fibre has been committed to allow the company to produce the 200,000 tonnes of pellets annually with signed offtake agreements in place with large Korean customers in excess of expected productions rates for this initial project,” stated the release.

Pellets are produced under extreme heat and pressure and in large commercial applications are used in power plants.

The company established to construct the plant is called Gitxsan Bio-Energy Ltd. and the expectation is to create 40 full-time jobs.

Engineering and related tasks are currently underway with business details are being finalized,” stated the release.

The area First Nations involved are the Suskwa and Gitsegukla, the release added.

In 2010 Global Bio Coal Energy and Coast Tsimshian Resources announced their intention to build a pellet plant on a section of the latter's Poirier log yard at the far western end of Keith Ave. in Terrace.

It was one of a number of proposals to surface in the expectation of adding value to area fibre.

Ultimately, the Terrace concept was never realized.

This latest proposal is the result of three years of consultations and negotiations, said the release.

Late last year Coast Tsimshian Resources, in partnership with Pinnacle Renewable Energy Inc., announced its intentions to construct and operate a pellet plant in Terrace.

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