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Province launches bid process for Crown wood

  The McGuinty government is launching a second leg of a process to give forestry companies and community organizations access to millions of cubic metres of unused Crown wood.
biomass(1)
Biomass producers want a better feed-in tariff rate to begin harvesting waste wood fibre for green energy projects.

 
The McGuinty government is launching a second leg of a process to give forestry companies and community organizations access to millions of cubic metres of unused Crown wood.

After starting a biomass procurement call last January, the government received 131 Expressions of Interest to access an estimated 11 million cubic metres of roundwood, tops and branches that can be used to make wood pellets for energy.

Now the Ministry of Northern Development, Mines and Forestry is asking for formal proposals through a competitive process.

Minister of Northern Development, Mines and Forestry Michael Gravelle said the “overwhelming” response from Canadian and international proponents earlier this year was very encouraging.

With many forestry mills shut down, Gravelle said this new process will diversify the industry and find a use for fibre that was not being utilized.

The wood will come from 41 management units, mostly in Northern Ontario.

The deadline for submissions is March 4, 2010.

Gravelle said the move will spur new investment and create green jobs in a chronically struggling forestry industry.

He said proposals will be evaluated on a number of criteria including their strategy for providing opportunities to Aboriginal communities.

In a move that he knows will anger some forestry stakeholders, the Thunder Bay- Superior North MPP said the government can't wait for the completion of a review of the province's controversial forest tenure system.

“Not everyone is going to be happy about this step. However, tough times call for bold measures.” said Gravelle in a Nov. 26 speech in Thunder Bay, to announce the start of a Provincial Wood Supply Competitive Process.

“Consider this a stimulus program.”

Information sessions on the process will be rolled out in Kenora, Thunder Bay, Sault Ste. Marie, Timmins and Pembroke beginning in early December.

“The diversification of the forest industry in Ontario, including emerging innovative bio-fuel and value-added projects, is key to strengthening Ontario's forest sector now and into the future.”

For details go online at www.ontario.ca/forestry-news.