THUNDER BAY – Newly minted Associate Minister of Forestry and Forest Products Kevin Holland announced a new five-year contract between Ontario Power Generation (OPG) and the Independent Electricity System Operator (IESO) to support nearly 400 direct and indirect jobs in the region.
“Biomass is gonna play a critical role in sustaining the forestry industry moving forward. Minister Lecce announced last week that it's a critical component of the energy procurement in the province moving forward and it's gonna, use the mills' residuals and the forest residuals to create power. It's going to be a huge supplier of energy in our province.
Holland said this contract is a huge win for the region and Northwestern Ontario in particular.
The multi-million-dollar contract with OPG and IESO will maintain a $20 million per year overall economic impact in Northwestern Ontario. Approximately, 90,000 tons of wood pellets are produced by Resolute yearly contributing to the local community in many ways.
As part of Ontario’s commitment to phasing out of coal, OPG converted the Atikokan Generating Station from coal to 100 per cent biomass making the station the largest biomass-fuelled plant in North America.
“I know how important this plant is to not just the community or the region and the sector, but the community itself. Speaking with Mayor Rob Ferguson, their town depends on this facility being in existence,” explained Holland.
Atikokan Generating Station is the backbone of the Municipality of Atikokan due to the economic spin the organization provides.
Atikokan Mayor Rob Ferguson pointed out that the generating station employs 60 residents, but combined with the workers at the Resolute Forest Products in Sapawe and Thunder Bay, OPG has created a network of job stability for those people making wood pellets to the truck driving hauling the pellets to the biopower plant in Atikokan.
“It's been there for almost 40 years now and it is part of the community. We don't take it for granted, but we appreciate the Ontario power generation. They're good corporate citizens and we really enjoy having them and we're hoping for another 40 years,” Ferguson told Newswatch.
Atikokan Generating Station generates 140 megawatt hours of electricity enough to power 70,000 homes in Northwestern Ontario.
“It is a peaking plant. So it is there when the price is high and when the demand is high on hot summer days and cold winter nights,” Ferguson explained.
“And as the water with climate change, the water levels fluctuate so much that there's not always the hydroelectric generation that's available and the Atitkokan plant is always there to step up and top things up in Northwest Ontario.”
The announcement was made on Friday in Thunder Bay at Resolute Saw Mill where Minister of Energy and Electrification Stephen Lecce said his government is working to expand bioenergy in the province.
Securing this contract ensures that Northwestern Ontario maintains its status as a leading contender in the biomass industry.
We definitely need to generate more energy, more clean, affordable energy. Our province is growing 60 per cent more forecasted demand between now and 2050. So, we're taking in all the above approach,” said Lecce.
“Certainly nuclear energy will play a critical role, but we're supporting biomass and renewables. We're expanding every form of generation because we need to produce more affordable energy for our people, our industry that we electrified the economy.”
Both Lecce and Holland are fairly new to their ministry profiles since Ford’s cabinet shuffle this summer, but Lecce said he's worked closely with Holland, since he was named associate minister of forestry, to ensure the completion of the contract announced on Friday.
“Kevin Holland in the early days of his appointment to the ministry called me saying we need to do more work in biomass. We need to expand this. We need to fight for forestry workers, especially with the rise of US protection on software lumber. And that message has been received not even 30 days of the job,” admitted Lecce.
Minister of Northern Development Greg Rickford said biomass electricity generation facilities will serve an important role in Ontario’s electric and forestry sectors. Biomass also provides additional value as the industry considers a longer-term transition for alternative uses of wood waste that could have otherwise been diverted to landfills.
“This generating station is something that the world over should pay careful attention to. This is an extraordinarily clean kind of pellet. The technologies that are used not only in its production but in its processing have some of the highest environmental performances known the world over in pellet technology,” said Rickford.
