City councillors ♥ St. Marys co-gen plan

Last night, Sault Ste. Marie City Council didn't just support St. Marys Renewable Energy Corp's bid to create a $170 million co-generation power and heat plant.

Councillors went out of their way to commend the company for taking the initiative to build a modern, clean, renewable energy centre.

The plant would be located on the property of St. Marys Paper Corp.

Gord Acton, president of both companies, said the project is a critical business step and essential to the paper mill's continued viability and positioning in the market.

The proposed project will use biomass for fuel and will generate about 35 gross megawatts of power.

Acton [shown] said the paper mill uses about 42 megawatts.

The project will fulfil much of the papermaker's power needs, providing energy from a renewable, clean resource that will give the mill a competitive edge, he said.

It will also stimulate the local economy by providing green jobs and a use for biomass that would have decomposed, been burned or landfilled in the past.

"The project will require approximately 200,000 dry tonnes of biomass annually," Acton said. "It will primarily use a secure supply of forest biofibre from the Algoma and North Shore crown forests, as well as bark and wood waste from other mills."

St. Marys will provide some of the biomass from un-merchantable trees, mill residues and legacy piles of wood waste.

The company is pursuing partnerships with private-sector investors, Acton said, and doesn't intend to ask for funding from the City at this time.

It's also pursuing funding from the Ontario government, he said.

"We are approved under the Ontario Prosperity Program for up to $50 million," Acton said.

In response to a question from Ward 1 Councillor Steve Butland's about financing, Acton said the company is understandably stressed but nonetheless hopeful that everything will be in place when the time comes to begin the project.

Acton said there are still several steps to go through before it can begin.

The next step involves a public open house by St. Marys Renewable Energy Corp. this Thursday (May 14) from 4 to 8 p.m. at the Marconi Hall.

The public is invited to attend and learn more about the project, its possible environmental effects and how it could impact the future of St. Marys Paper Corp in the wood fibre bio-economy.