Canfor sells Fort Nelson forest tenure to Peak Renewables

Canfor announced on Nov. 17 it has reached multi-year $30 million agreements with pellet producer Peak Renewables involving the sale of the company’s forest tenure in the Fort Nelson region of British Columbia.

Canfor said the agreements follow Peak Renewables’ purchase of its Fort Nelson mill assets in the third quarter of 2020. The transactions are subject to customary closing conditions, including approval from the BC Minister of Forests, and are expected to close during the first quarter of 2021.

“I am pleased to have reached an agreement to sell our Fort Nelson tenure to Peak Renewables, a company that is committed to developing a long term plan to rejuvenate the forest industry in the region,” said Don Kayne, president and CEO, Canfor.

According information posted to its website, Peak Renewables is developing a 600,000-metric-ton-per-year wood pellet plant in Fort Nelson, British Columbia. The plant and associated harvesting activities are expected to provide 300 direct jobs and 150 secondary jobs in the region. Pellets produced at the plant will be shipped via rail to Vancouver and transported via ocean freight to customers.