British Columbia approves forest tenure sale for pellet project

The government of British Columbia on Aug. 18 approved the transfer of a forest tenure in the Fort Nelson Timber Supply area from Canadian Forest Products Ltd. (Canfor) to Peak Fort Nelson Properties Ltd., which plans to develop a wood pellet production facility under the name Peak Renewables.  

Canfor announced in November 2020 it had reached multi-year $30 million agreements with Peak Renewables involvement the sale of its forest tenure in the Fort Nelson region of British Columbia. The agreement followed Peak Renewables’ purchase of Canfor’s Fort Nelson mill assets in the third quarter of 2020.

A notice published by the British Columbia Ministry of Forests, Lands, Natural Resource Operations and Rural Development indicates the license transferred to Peak Renewables has an allowable annual cut of 553,716 cubic meters. The ministry said the transfer follows comprehensive engagement and considered input from the public, local governments and Indigenous Nations. According to the notice, the transfer is supported by Fort Nelson First Nation, which has been working with Peak Fort Nelson Properties to institute a land management framework that will guide operations under the license.

Peak Renewables previously indicated that Peak Renewables plans to develop a 600,000-metric-ton-per-year wood pellet plant. 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.