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Pellet, cogen plants could be “driver for change” on First Nation

While Whitesand First Nation’s long-running renewable energy project is still pending final approval from the province, there’s no shortage of suitors according to David Mackett, community development officer for the northwestern Ontario community.
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Whitesand First Nation is progressing on a proposed wood pellet and biomass-fed cogeneration plant to create local jobs and prosperity for the northwestern Ontario community.

While Whitesand First Nation’s long-running renewable energy project is still pending final approval from the province, there’s no shortage of suitors according to David Mackett, community development officer for the northwestern Ontario community.

“We have received very strong offers for our wood pellets, which is quite amazing to us. We haven't started building but the response has been huge,” he said.

In addition to creating power and heat for the community located near Armstrong, the plant will have a pellet mill equipped to produce 60,000 tonnes annually of residential-grade wood pellets. Both the pellet facility and a cogeneration power plant will rely on wood waste from a sawmill, yet to be constructed, that is also part of the project.

Craig Toset, Whitesand’s economic development officer said the First Nation of 1,200 members (450 living on-reserve), is holding off on making any commitments until the final paperwork is delivered to the province.

“Then it's back up to the agencies to give us the approvals to move forward. We have a lot of requests. We’re not signing anything at this point (but) we get requests (for the pellets) almost daily.”

One of the signs-offs the community is anxious to get from the province is a Renewable Energy Approval. The application process has cost Whitesand close to $500,000 to complete. If the approval is granted, Mackett said, it will be the first biomass project to be given the go-ahead under the regime.

A major hurdle often faced by similar projects was cleared back in 2011 when the First Nation accepted a Crown wood supply offer from the province.

While the plant has the potential to be a huge economic boost for Whitesand, with 60 full-time and 60 seasonal jobs, Toset said the local power crunch is a pressing concern with its diesel generator operating near peak capacity during the winter months.

The community’s only source of power is a Hydro One-supplied 1.1-megawatt generator.

“There are other Northern communities (on diesel power)...that I'm aware of that have already hit that peak and they can’t do anything,” said Toset.

A lack of power means a lack of progress in First Nation communities.

“If they wanted to do economic development they couldn't, unless they're going with diesel generation, and Hydro One isn't currently putting in any new generators anywhere,” said Toset.

Like Toset and many in the community, Mackett is hopeful that the new plant will create more than electricity for Whitesand.

“We have a very high unemployment rate, no chances for meaningful work. Forty-five per cent of the on-reserve population receives Ontario Works.  That doesn't include other assistive programs,” said Mackett. “Eight-five per cent of those recipients do not have grade 12.”

Mackett feels the lack of jobs leads to other social problems facing the community such as drug and alcohol abuse.

“I think it’s quite obvious why; there's no work. Kids come back and what are they going to do? We’re trying to change that and were trying to use biomass as the driver for change.”

A training program developed in collaboration with Confederation College is one of signs Mackett points to that shows the renewable energy project is already having a positive impact in Whitesand.

“(One trainee) probably (only) had grade 8 when he started, but he got through. He did saw mill training, he did all his heavy equipment, he did all the power tools, and they did welding,” he said with a noticeable hint of pride. “That’s why we’re doing this project.”

Mackett added there’s even talk about eventually adding a greenhouse to the site to harness wasted heat in order to grow healthy food for the First Nation. “It’s a life-changing opportunity led by biomass.”

Also, Mackett said the plant could be tooled up to produce advanced biomass, the rare wood pellet fuel that will be used at the Thunder Bay Generating Station.

Despite the prospect of another cold winter straining Whitesand’s diesel generator and the enthusiasm surrounding the project, Craig Toset said the community still has a bit of waiting to do.

“We've still got to get the power purchase agreement and we’ve got to finish the engineering and we have to get the approvals... in order to start the construction. At that point we're a year out maybe.”

As the community works to clear the final regulatory hurdles for the project,  Mackett said Whitesand is getting some good feedback as they work towards securing financing to build the plant.

“We’ve had a great response from some of the major banks. The MaRS (Discovery) District in Toronto wants us to actually list the project on the social venture exchange, which is pretty cool.”

www.whitesandfirstnation.com