NB Power is securing its transition away from coal by locking in long-term biomass supply through a new agreement with Chapleau BioCarbon Inc. This commercial milestone supports the utility's strategic plan to convert the Belledune Generating Station from coal to sustainably sourced advanced pellets. The deal provides a critical demand foundation for CBC’s proposed torrefied biomass project in Chapleau, Ontario, as the company moves toward detailed engineering and financing.
NB Power Belledune Fuel Conversion Strategy
The agreement establishes a long-term supply of 75,000 metric tonnes per year of torrefied wood pellets from CBC's planned Chapleau facility. Running through March 31, 2040, the contract aligns with NB Power’s preference to utilize advanced wood torrefied pellets to meet federal coal phase-out requirements. By converting the Belledune Generating Station, the utility aims to maintain the station’s contribution to the New Brunswick electricity system while supporting reliability and energy security. This conversion is intended to allow the station to continue operating beyond 2030, providing a lower-carbon electricity supply. The agreement is one of several supply contracts announced by NB Power following its Board of Directors’ approval in August 2026, marking a decisive step in the utility's fuel switching roadmap.
Chapleau BioCarbon Project Development and Scale
CBC is advancing a proposed facility in Chapleau, Ontario, designed to produce torrefied biomass pellets using sustainably sourced wood fibre and forestry residuals from Northern Ontario. The company is developing this project in collaboration with GreenFirst Forest Products Inc. and Chapleau-area First Nations. Once operational, the facility is expected to create up to 30 direct and 70 indirect jobs. The total project aims for a 135,000-tonne production capacity for both torrefied biomass pellets and soil amendments, positioning it as one of the largest facilities of its kind in North America. CBC is currently progressing through the technical, economic, and financing stages required to bring the facility to fruition, utilizing this long-term demand to stabilize its commercial outlook.
Key Takeaways
- CBC will supply 75,000 metric tonnes of torrefied wood pellets annually to NB Power through March 31, 2040.
- The agreement supports NB Power's plan to convert the Belledune Generating Station from coal to advanced pellets to meet federal phase-out mandates.
- The proposed Chapleau facility is being developed alongside GreenFirst Forest Products Inc. and Chapleau-area First Nations.
EnergyInsyte's Take
In our view, this agreement serves as a vital de-risking mechanism for both the utility and the developer. For NB Power, securing a 15-year supply of torrefied pellets provides the fuel certainty necessary to justify the capital expenditure involved in converting a coal-fired asset like Belledune. For Chapleau BioCarbon, this long-term off-take agreement provides the commercial bankability required to move from engineering into the heavy financing phase. This deal illustrates how regional forestry residuals can be leveraged to bridge the gap between coal retirement and long-term grid reliability.
Questions & Answers
How does this agreement impact the Belledune Generating Station's operational timeline?
The conversion to advanced wood torrefied pellets is intended to allow the station to continue operating beyond 2030, helping NB Power meet federal coal phase-out requirements while maintaining electricity system reliability.
What is the scale of the proposed Chapleau BioCarbon production facility?
The facility is being designed for a total production capacity of 135,000 tonnes of torrefied biomass pellets and soil amendments, which CBC expects could make it one of the largest of its kind in North America.
What specific fuel volume is committed under this contract?
Under the agreement running through March 31, 2040, CBC is committed to supplying 75,000 metric tonnes of torrefied wood pellets per year to NB Power.
Who are the primary partners involved in the Chapleau project development?
The project is being developed by Chapleau BioCarbon Inc. in collaboration with GreenFirst Forest Products Inc. and Chapleau-area First Nations.
Source: Businesswire
