Lease agreement reached for Dallas woodwaste burner

Plans to build a woodwaste burner in Dallas took one step forward Tuesday with an agreement reached to lease the intended site.

A press release from Nations Energy says the company has entered into a 15-year agreement with Biosource Power Ltd. through its wholly owned subsidiary, Cedarhurst Forestry Products Inc.

The deal takes place concurrent to their purchase of the lands, buildings and pellet manufacturing facility at 10285 Dallas Rd. - the former SBC Firemaster plant - from Farm Credit Canada.

The sale, part of Farm Credit's foreclosure against Gold Standard Pellets Ltd., could be completed by September, the press release said.

An official with the company couldn't be reached for comment, but Nations Energy president Dale Andrews said in the release that his company has eyed the location for some time.

"We are pleased to have secured an appropriate agreement for the development of our initial project in the community of Kamloops," said Andrews.

Under the agreement, Cedarhurst will lease a portion of the property as a permanent site for its biomass project. The release says Biosource and Cedarhurst will use the facilities in co-operation.

This includes any potential agreements on fibre supply, pellet production and distribution and rail transportation.

The provincial government announced last month that Nations Energy was awarded a $1-million grant by the Innovative Clean Energy Fund in order to generate electricity from a woodwaste burner in Dallas and build a bioenergy manufacturing plant.

The most recent business proposal from Nations Energy is dated from February this year, contained in an application to Natural Resources Canada for $4.7 million in funding toward a proposed $14.5-million plant.

The technology, known as torrefaction, is a process of removing moisture from wood pellets to create "biocoal." Its claimed advantage is ability to pack more energy for its mass than conventional wood pellets, making it viable to export overseas. The technology is promoted by the B.C. Bioenergy Network.

Another business plan from Nations Energy, dated in January this year, shows plans for a biocoal facility as well as a five-megawatt power plant that would feed the B.C. Hydro grid.

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