Construction is underway on a US$200 million biomass CHP facility that will see waste wood burned to produce electricity at NewPage’s Point Tupper mill site in Nova Scotia, Canada.

The project received approval at the end of 2010, and since then NewPage has been at work ordering the necessary equipment, most notably a steam turbine generator from Mitsubishi Power Systems, which is due to arrive by the second quarter of 2012.

That component and the supporting work, such as construction of a pump house that will take water from the Strait of Canso to the turbine, will cost about $93 million.

Improvements are also being made to the existing 27-year-old boiler, which NSPI bought from NewPage as part of the deal for $80 million.

Efforts are also underway to ready the mill’s woodyard, including construction of a silo to hold wood chips.

A new transformer is also on order, which will also allow the mill to supply electricity to NSPI’s grid.

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