Government Announces Agreement with Corner Brook Pulp and Paper Limited

The province has agreed to purchase additional power to further support the electricity grid and to help stabilize Corner Brook Pulp and Paper Limited while the company explores diversification opportunities.

The six-month agreement includes Newfoundland and Labrador Hydro purchasing excess green energy from Corner Brook Pulp and Paper's Deer Lake Power assets. In turn, Corner Brook Pulp and Paper will work to identify new revenue sources from viable wood-based bioproduct projects.

There is no impact on the ratepayer as a result of the agreement and Hydro will have the ability to draw on the excess power as necessary.

In addition, the Provincial Government and Corner Brook Pulp and Paper have reached an agreement with respect to security, workforce and diversification. Corner Brook Pulp and Paper has committed to offer for sale saw logs to the three large sawmills in line with Corner Brook Pulp and Paper's annual operating plans submitted to the Department of Fisheries, Forestry, and Agriculture. These saw log sales are essential for the stability of the forest sector.