Supply Agreements Mark Shift to Renewable Energy

NB Power has finalized agreements with Canadian suppliers to acquire sustainably sourced agricultural hemp and wood pellets, advancing the conversion of the Belledune Generating Station away from coal. The agreements cover most of the biomass needed to substitute the foreign-sourced coal currently burned at the site. The plant, which supplies roughly 15 per cent of New Brunswick’s power, relies on high-efficiency boilers where pellets will generate steam to turn electricity turbines.

The shift follows a decade-long search by NB Power for alternative fuels ahead of a federal mandate requiring coal-fired power plants to close by 2030. Belledune is among eight remaining coal facilities nationwide. Chief executive Lori Clark noted that securing the supply agreements allows the project to move into the execution phase, with official timelines setting full conversion between 2028 and 2030. Utility upgrades at the facility can now begin with the supply network confirmed.

First Nations Partnership and Local Economic Impact

The primary biomass supplier is the Belledune Joint Venture, an alliance combining producer Airex Energy, a forestry firm, and two First Nations. Both the Eel River Bar First Nation and Pabineau First Nation contributed approximately $10 million each to secure 10 per cent equity stakes. Chief Terry Richardson of Pabineau First Nation characterized the setup as “a whole bunch of win-win-win situations,” highlighting that removing forestry waste like floor scrapings and branches helps reduce wildfire risks and lowers greenhouse emissions.

Airex Energy plans to build a $100-million production facility in an existing industrial structure situated roughly one kilometre from the station. CEO Michel Gagnon stated the long-term deal with NB Power helps the company obtain third-party financing and finalize arrangements with local sawmills. Once fully operational, the plant will employ 75 people directly and support over 325 forestry positions. Initial pellet manufacturing is scheduled for late 2027, with plans to reach full capacity of 150,000 tonnes of torrefied pellets annually by 2029 while blending fuel with coal during the phase-in.