Canfor will sell its forest tenure in the Fort Nelson region of British Columbia to the wood pellet company that purchased Canfor’s Fort Nelson mill assets in the third quarter of 2020.
On Nov. 17, Canfor announced it has reached multi-year $30-million agreements for the sale of the forest tenure to Peak Renewables.
The transactions are subject to customary closing conditions, including approval from the B.C. Minister of Forests. Closing is expected to occur in the first quarter of 2021.
“I am pleased to have reached an agreement to sell our Fort Nelson tenure to Peak Renewables, a company that is committed to developing a long-term plan to rejuvenate the forest industry in the region,” said Don Kayne, president and CEO of Canfor, in a statement.
Peak Renewables is a bioenergy company that manufactures sustainably sourced pellets. The company is currently establishing a 600,000 tonne per year wood pellet plant in Fort Nelson.