Northern Ontario in Canada is hailing a new combined heat and power plant with local representatives claiming it as a welcome boost to the region’s forestry industry.

The province contributed $30m in grants and loan guarantees for the $66m biomass-fired Becker cogeneration plant in Hornepayne.

Owned by Olav Haavaldsrud Timber Co. Ltd, the 10 MW facility is expected to support 160 jobs in the community of about 1,000 people, according to the Sault Star.

Natural Resources Minister David Orazietti said in a release that the plant will mean big savings for the Haavaldsrud sawmill, calling it a major turning point for the community.

“This is a prime example of our government’s commitment to the forestry industry and to preserving and creating jobs in Northern Ontario,” said Orazietti.

The plant will use sawmill wood bi-products to generate electricity for the provincial power grid and to produce heat for nearby sawmill and kiln operations.

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