NB Power turns to wood pellets as Canada’s coal deadline looms

On Thursday NB Power announced it has signed agreements with Canadian suppliers of sustainably sourced wood and agricultural hemp pellets for the Belledune Generating Station. The deals are meant to secure most of the biomass fuel the plant will need to replace coal, which it now buys from abroad.

The Belledune plant provides roughly 15 % of New Brunswick’s electricity. The federal government has mandated that all coal‑fired stations be retired by 2030, so NB Power has been looking for a new, renewable fuel for more than ten years.

The biggest fuel supplier will be the Belledune Joint Venture – a partnership of a pellet producer, a forestry company and the Pabineau and Eel River Bar First Nations.

Within the joint venture, Quebec‑based Airex Energy will build a $100‑million torrefied pellet plant about a kilometre from the station. The facility is designed to produce up to 150,000 tonnes of pellets each year, using sawmill by‑products and forest residues such as branches and wood scraps.

First Nation communities have invested roughly $10 million for a 10 % equity stake in the venture, according to Chief Terry Richardson of Pabineau First Nation. He said the conversion creates “win‑win‑win” benefits, including jobs and reduced wildfire risk.

NB Power chief executive Lori Clark said the new supply agreements move the transition from planning to execution, allowing the utility to begin equipment upgrades at Belledune. The public timeline shows the conversion will be completed between 2028 and 2030.

By sourcing fuel locally, the province reduces dependence on foreign imports and cuts greenhouse‑gas emissions, while supporting forestry jobs. As Michel Gagnon, CEO of Airex Energy, explained, the agreement also helps secure financing for the pellet plant.

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