Construction is set to begin on a biomass-fueled electricity generating facility located near Fort St. James as financing has been secured for the $235 million project, which was awarded a 30-year contract to sell power to BC Hydro in March 2012.
The Fort St. James Green Energy Project will be operated by Dalkia, a subsidiary of Veolia Environnement and Electricite de France. Dalkia and Fengate Capital Management are equity investors, and $175 million in debt financing is being sourced from five major banks – Bank of Tokyo-Mitsubishi, CIBC, National Bank of Canada, Natixis and Rabobank.
The generator will burn approximately 200,000 metric tones of sawmill waste, roadside residues and trees that have been killed as a result of the pine beetle epidemic annually, generating 40 MW of electricity, or enough to power 40,000 homes for a year.
"The Fort St. James Green Energy Project will use state-of-the-art emissions reduction equipment," Dalkia said in a release. "Overall, through the shutdown of sawmill beehive burners in the area and reduced burning of roadside debris, the project will result in substantially improved air quality in the region.
"Being air-cooled, the project will use little water and by offsetting fossil generation, it will result in GHG emission reductions of 95,000 tonnes a year."
The station is expected to begin commercial operation in summer 2016. Construction will result in 250 jobs and the completed facility will employ 22 full-time staff.
At the time the Fort St. James project was awarded in 2012, Dalkia also won a second 30-year electricity contract with BC Hydro for a biomass-burning generating station in Merritt.
