Friday, 15 November 2013 10:20

Idled Wawa mill to produce wood pellets

The province says an idle mill in Wawa will re-open and create about 40 jobs in the process.

Rentech Incorporated will convert an idle mill to an industrial wood pellet production facility.

pellets home

The province says production is set to begin next fall, and the machine will have an annual production of 360,000 tonnes of pellets by 2016.

In a news release, NDP Algoma-Mantoulin MPP Michael Mantha said it's promising to see innovation and renewal in the forest sector.

"I have been working closely with Rentech over the past 18 months while ensuring the government was aware of the importance of this project," said Mantha.

"Many of our communities have been devastated by the downturn in the forestry sector and this project will bring much-needed jobs back to the community".

The company has a contract to export pellets to a power generating facility in the United Kingdom which is converting from coal-powered generation to burning biomass fuel.

"The forestry sector has been experiencing difficulties for quite some time.  It is promising to see some innovation and renewal in this sector from companies like Rentech," said Mantha.

"I know that this project will have positive economic benefits, for not only the community of Wawa, but for the surrounding communities as well."

Additional Info

Rentech, Inc. is quickly emerging as a growing, diversified supplier of wood chips, wood pellets and nitrogen fertilizers. The Company also owns patented technologies for synthetic fuels and power production that can be licensed by third-parties.

Wood Fibre Processing

The new Rentech has secured the critical foundation of a multi-pronged strategic vision of becoming one of the largest wood processing companies in the world. In May 2013, Rentech acquired Fulghum Fibres, a leader in fibre processing services for wood chips production, with 24 years of operating experience and a portfolio of established customers under long-term contracts.

Fulghum Fibres provides Rentech with a stable operating and financial platform with inherent growth opportunities within the sector. The Company intends to use this platform to launch into the complementary, growing wood pellet industry, a natural extension of chip production. Fulghum Fibres brings operating and processing expertise to the front end of the Company's wood pellet business, as each pellet mill requires wood handling and production of chips. Fulghum Fibres also brings a joint venture with Graanul Invest, a European company that is one of the largest pellet producers in the world, to develop and construct pellet projects in the U.S. and Canada.

Rentech orchestrated an impressive and strong entry into the wood pellet industry with long-term contracts with Drax Power Limited and Ontario Power Secured contracts for the delivery of over 4 million metric tons of wood pellets over 10 years using sustainably managed Crown fibre in Eastern Canada. Additionally, Rentech secured the logistical supply chain for the delivery of the pellets under long-term contracts. We are converting two fibre mills in Eastern Canada for pellet production, with the first delivery anticipated for the second quarter of 2014.

We believe our investment in the wood fibre industry will create value for our shareholders because of the following key attributes of the sector:

  • Stability of cash flows
  • Long-term customer, supply, and logistics contracts
  • Diversification of products and markets
  • Commercially available technologies
  • Global and growing markets
  • Capital requirements to execute on the strategy are within Rentech's anticipated resources
  • Leverages Rentech's expertise and resources
  • Income qualifies for a Master Limited Partnership (MLP) structure

We intend to grow our wood chip and wood pellet business with the goal of becoming one of the largest wood processing companies in the world.

For general inquiries, please email us at This email address is being protected from spambots. You need JavaScript enabled to view it. This email address is being protected from spambots. You need JavaScript enabled to view it. .

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