Skeena Sawmills and Pacific BioEnergy Announce Long Term Off-Take Agreement for Wood Pellets

For Immediate Release
January 31, 2019

Terrace, B.C. – Skeena Sawmills Ltd. and Pacific BioEnergy Corporation (PacBio) have entered into a long term off-take agreement for wood pellets. Under the terms of the agreement, PacBio will purchase all of the pellets produced at Skeena Sawmills’ new, state-of-the-art pellet plant, in support of PacBio’s long term supply agreements with power producers in Japan. Skeena’s pellet plant is built adjacent to its sawmill in Terrace, B.C., and will commence production in Q1 2019.

“Skeena’s pellet plant provides a critical outlet for residual fibre from the sawmill and builds on our commitment to maximizing value from the forest resource and generating local jobs from local logs in Northwestern British Columbia,” said Rick Harris, Vice President of Sales and Marketing for Skeena Sawmills. “Our $20 million investment to build a pellet plant, combined with this long-term strategic partnership with PacBio to serve international markets for bioenergy, supports the sustainability of both our business model and the regional forest economy.”

Commenting on the agreement, John Stirling, President, of PacBio said, “This agreement with Skeena Sawmills contributes to our growing presence serving Japan’s demand for bioenergy products and advances our vision of bringing greater value to B.C.’s forest industry. I want to thank Paul Kalil, PacBio’s VP of Corporate Development, and Rick for leading the development of this Agreement. We look forward to further developing our relationship with Skeena.”

About Skeena Sawmills

Skeena Sawmills Ltd. is a Canadian corporation headquartered in Vancouver, British Columbia, with sawmill and forest operations in Terrace, BC. Its sawmill has a capacity of approximately 120 million board feet of lumber production annually and is located 135 kilometers from the Port of Prince Rupert, BC. Skeena Sawmills is one of the largest Pacific Coast Hemlock sawmilling facilities in British Columbia, producing a wide variety of quality Hem-Fir products for domestic and international markets.
www.skeenasawmills.com

About Pacific BioEnergy Corporation

Pacific BioEnergy Corporation is a leading manufacturer and internationally recognized supplier of wood pellet biomass fuel to industrial purchasers worldwide. The company is based in Prince George, BC with its head office in Vancouver, BC.
www.pacificbioenergy.ca

Media Contacts

Rick Harris
Vice President, Sales & Marketing
Phone (604) 612-0073
rick.harris@skeenasawmills.com

John Stirling
President
Phone (604) 602-1099
jstirling@pacificbioenergy.ca