Conifex Timber to shut down Mackenzie sawmill for a month; new biofuel project makes progress



Conifex Timber to shut down Mackenzie sawmill for a month; new biofuel project makes progress | Conifex, closure, layoffs,

CANADA (From news reports) -- Conifex Timber has announced a four-week curtailment at its Mackenzie sawmill due to the continued weakness within the North American Lumber Market.

The curtailments will begin on December 15th and is expected to reduce production by 13 million board feet.

Mayor Joan Atkinson said while the decision wasn't unexpected, it could have been a lot worse.

"Certainly not news that we wanted to hear but I am very grateful that it is a temporary curtailment. We know that there have been a few communities in the interior that have been hit with permanent closures in the last few weeks."

Earlier this week, Ottawa announced it will provide 500-million each in funding towards a loan program for softwood lumber businesses as well assisting lumber firms facing liquidity pressures.

Atkinson noted this follows a similar announcement that was made in August.

She adds while the support is all well and good, its time to put some extra money in people's pockets noting stating no payments have come as of yet from the federal government.

"I think they have to stop making announcements and politicking and actually disperse the the funds so that we don't see any more forest-dependent communities hit."

Earlier this week, Drax announced it will be ceasing operations at its Williams Lake pellet plant by the end of this year.

In addition, West Fraser is shuttering its 100 Mile House sawmill.

The two Cariboo closures will put nearly 200 people out of a job.

On a more positive note, Atkinson stated Calgary-based Expander Energy announced further progress on the Mackenzie Biofuel Project, a proposed Biomass Electrolysis to Liquids facility in the community.

The proposed facility will convert 84,000 dry tonnes per year of forestry wood waste into 30 million liters per year of renewable diesel, renewable naphtha and bio-wax.

The biofuel production is intended to displace fossil derived fuels and could result in a net avoidance of up to 90,000 tonnes of carbon dioxide annually.

It is also in partnership with the McLeod Lake Indian Band.

Expander aims to continue the development of the project with the goal to secure funding early in 2026, with production by 2029.

"The MacLeod Lake Indian Band is committed to environmentally responsible development of natural resources within our traditional lands that are consistent with the values of the Tse'khene people and provide significant economic opportunities in the region for decades to come." said Chief Harley Chingee - MacLeod Lake Indian Band.

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