A letter of intent was recently established between the Saskatchewan Ministry of Energy and Resources, Iogen and Domtar Corp., setting the stage for a potential redevelopment of the Prince Albert Pulp Mill into a cellulosic ethanol plant and bioenergy facility. If the project proceeds, Iogen and Royal Dutch Shell would buy the required mill assets from Domtar.
The government would then assume ownership of the remaining mill property and be responsible for existing environmental obligations associated with the decommissioning of the pulp mill site. In exchange, Domtar would pay an environmental settlement fee to the province to compensate for its share of environmental site obligations.
Iogen is currently undergoing a detailed assessment to develop the cellulosic ethanol plant that will run on cereal straw from locally contracted farmers, to determine whether to move forward or not. If the investment decision is positive, the multi-million dollar project, in partnership with Royal Dutch Shell, will include a power plant producing green electricity from forest and ethanol plant residues, according to the Ministry of Energy and Resources.
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The letter of intent follows a $100,000 investment made by the province’s Community Development Trust Fund to the city of Prince Albert. The investment supports the development of a feasibility study for the construction of a green industrial park that would house biodiesel, cellulosic ethanol and wind power producers. If the Iogen project moves ahead, the city could greatly benefit by attracting more industrial business to the city.
“The city is once again prepared to demonstrate its leadership in developing the industry in this region and the province has agreed that this Green Energy concept is an important and vital part of our community’s and province’s future,” said Jim Scarrow, mayor of Prince Albert.