Canfor eyes Prince George for major biofuel facility

One of the world's largest logging companies is looking to get into the oil business.

Canforis in the early phases of developing what would be the first evercommercial-scalebiocrudeoil plant. The logging company is looking to convert wood waste from its pulp millsinto mass quantities of crude oil at a new facility inPrince George.

"In the next few yearswe'll be announcing a project and building a real facility that will produce upwards of 400,000 barrels of oil a year," saidBretRobinson, president ofCanforPulp.

The impending projectcomes afterCanforformed a joint venture withAustralianbiofuelproduction start-upLicellato explore the economic possibilities for large-scalebiocrudeproduction plants.

The partnership formedafterLicellasuccessfully converted wood waste fromCanfor'sPrince George mill into a stablebiocrudethat'snearly indistinguishable from traditional crude oil.

Canfor plans to invest funds to integrate Licella's technology into their current pulp mills. The new project would streamline waste directly from their pulp mills, coupled with virgin fibre, into an attached crude oil processing facility that will cost upwards of $70 million.

Thebiocrudecanseemlesslyfit into the existing refining infrastructure to produce petroleum products, according to both Robinson and Licella CEOLen Humphries.

• Cellufuelturns lumber into renewablebiofuel
• Airlines betting onbiofuelsto fill growing energy need
• Canada may trybiofuelsin navy ships

A partner fromdown under

"We spent about $60 million AUD ondeveloping the technology," said Humphries.

Licellahas spent the last eight years refining and scaling up the technology, and began trials converting mill waste from Canfor'sPrince George mills in 2013.

Current plansare to send engineersfrom Licella to Canada to train Canfor workerson the technology.

"The whole intent is for us to do a knowledge transfer," said Humphries, adding that the new facility willlook to employlocal operators.

Prince George Mayor Lyn Hall believes the plant will not only help create jobs in the town, but also define Prince George as aleader in bioenergy.

"We really are, from a community perspective,on the forefront of bioenergy," said Hall. "And not just in Canada, quite frankly, but throughout the world."