A pilot project to convert wood into biofuels has plans to be operational by next February after getting loans from the province of Nova Scotia.
The Chronicle Herald reported Aug. 30 that Cellufuel Inc. is receiving a $1.5-million loan to help build its demonstration project at the site of the former Bowater Mersey mill in Brooklyn, N.S.
The $4-million plant is part of a bioenergy and forestry innovation centre.
Cellufuel president Chris Hooper told the newspaper the company has secured the remaining $2.5 million needed for the pilot project from private investors.
The plant will have the capacity to produce about one million litres of fuel annually.
The Herald reports that most of the equipment will be new, although Cellufuel will use some of the former paper mill’s infrastructure. Hooper said the core technology will come from Europe, with other equipment being acquired locally or from Western Canada.
Cellufuel expects to use about 6,000 green tonnes of fibre a year in the demonstration phase.
The fuel that’s produced will mostly be sold to oil companies in Nova Scotia and Brunswick.
According to the newspaper, Cellufuel’s goal is to commercialize its licensed technology by launching 10 plants in the next five or six years. Hooper and fellow forest industry veterans Tor Suther, Veselin Milosevic and Ed McKay hope their company will produce 200 million litres of fuel and generate $200 million in revenue annually.