Sault Ste. Marie papermaker still in hunt to start co-gen

The Ontario Power Authority remains committed to assisting St. Marys Paper in starting a 35-megawatt co-generation plant.

A Sault newspaper report declared the paper company had failed to land a contract by the power authority for a renewable heat and power plant.

OPA spokesperson Ben Chin said St. Marys' plans to develop a co-gen plant “are very much alive” and the Crown corporation continues to pursue that possibility.

Last year, the OPA set out to procure 100-megawatts of renewable combined heat and power (CHP) for projects greater than 10 megawatts in size. The provincial Crown corporation has already completed two phases of this procurement call. A third round resulted in a contract going to a Sudbury-based numbered company for a 15-megawatt co-gen near the Haavaldsrud Timber Company in Hornepayne.

Chin said although the CHP III request for proposals is coming to an end, the power authority would like to “start a new process with St. Marys to explore an opportunity to partner on their co-generation project.”

The OPA's chairman, John Beck, and CEO Colin Andersen have requested to meet their counterparts at St. Marys to start this upcoming process.

St. Marys filed an application with the Ontario Power Authority June 11, which included details of the investment package. They are awaiting an answer from the OPA to buy into a province-wide power purchase initiative.

The project, reportedly in the $170-million range, is crucial to the company's long-term survival.