Temiscaming, QC Tembec announced August 22 that is has completed the acquisition of the assets of Chapleau Cogene…
Temiscaming, QC Tembec announced August 22 that is has completed the acquisition of the assets of Chapleau Cogeneration Limited, located in Chapleau, ON. The transaction closed on August 15. These assets have a present value of approximately $1 million, and include a biomass-fired boiler and steam turbine with an installed capacity of 7.2 megawatts.
Located adjacent to Tembecs Chapleau SPF sawmill, the cogeneration plant was commissioned in 1985. Since that time, the cogeneration plant has received most of its biomass fuel supply directly from the sawmill and, in return, the sawmill receives steam for its lumber kilns.
Dennis Rounsville, Tembecs executive VP and president of the Forest Group, commented Given the immediate proximity and the high degree of interdependence between our sawmill and the cogeneration plant, this is a very logical and sound acquisition. It is also consistent with our corporate priorities in terms of increasing the amount of electricity produced internally and reducing our reliance on purchased energy in all forms.
This brings Tembecs captive generating capacity to 26 megawatts in Ontario, all of which is considered green energy, based on either hydro or biomass fired generation. The companys total generating capacity, including facilities in Canada and France, will now exceed 150 megawatts.
The 12 unionized and 2 staff employees of the cogeneration operation will continue in their current roles as part of the acquisition.
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