Rentech to Convert Decommissioned Fiber Mills into Pellet Mills in Ontario

Researched by Industrial Info Resources (Sugar Land, Texas)--Rentech Incorporated's (Los Angeles, California) strategy to convert decommissioned fiber mills into pellet mills in Atikokan and Wawa, Ontario, will make the company largest fuel-pellet producer in the Canadian province.

Back in May 2013, Rentech purchased the former Weyerhaeuser OSB mill in Wawa and a particle board mill in Atikokan from Atikokan Renewable Fuels.

The mill in Atikokan, which will produce 100,000 tons per year, has been operational since October 2014. The larger Wawa mill, which has a capacity of 450,000 tons per year, is expected to be completed by mid-2015.

The fuel-pellet transport arrangements secured by Rentech are central to the company's strategy to become a prominent manufacturer and exporter of wood pellets in eastern Canada. The long-term contracts will reduce the costs to transport pellets from the Wawa and Atikokan facilities, and are structured to reduce per-ton expenses as pellet volumes increase through future expansions and/or developments.

Pellets will be shipped to the Port of Quebec and loaded on large Panamax vessels that are destined for fuel pellet markets in Europe.

Two additional pellet mills are in the works in Ontario: Protocol Biomass Corporation (Toronto, Ontario) is planning a $65 million, 250,000-ton-per-year white fuel pellet mill in Prescott, and Resolute Forest Products (Montreal, Quebec) is planning to construct a $9.6 million, 45,000-ton-per-day pellet mill in Thunder Bay.

Both mills are expected to be completed by the end of 2015.

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