Chapleau BioCarbon Signs Biomass Supply Deal with NB Power
Chapleau BioCarbon Inc. (CBC) has signed a long-term biomass fuel supply agreement with NB Power to support the utility’s planned conversion of its Belledune Generating Station from coal to sustainably sourced advanced torrefied wood pellets. The agreement marks a significant commercial step for CBC as it advances plans for a proposed torrefied biomass production facility in Chapleau, Ontario.
Under the agreement, Chapleau BioCarbon would supply NB Power with 75,000 metric tonnes of torrefied wood pellets each year. The contract is scheduled to remain in effect through March 31, 2040, establishing a long-term outlet for production from the proposed Ontario facility.
The agreement is one of several biomass fuel supply arrangements announced by NB Power following approval by its Board of Directors in August 2026. The agreements form part of the utility’s broader plans to transition the Belledune Generating Station away from coal while maintaining its role within New Brunswick’s electricity system.
For CBC, the long-term agreement provides a commercial framework as the company continues work on the proposed Chapleau project. The company is currently progressing detailed engineering activities alongside economic analysis and financing work required to advance the facility toward development and eventual construction.
“This agreement is a major milestone for Chapleau BioCarbon and provides an important commercial foundation as we advance the project,” said Steve Duchesne, President and CEO of Chapleau BioCarbon Inc. “Securing long-term demand from NB Power provides a strong foundation for the next stages of development as we continue advancing the technical, economic and financing work needed to bring the project forward.”
The planned Chapleau facility is being designed to manufacture torrefied biomass pellets from sustainably sourced wood fibre originating in Northern Ontario. The project is expected to make use of wood fibre and forestry residuals, creating an additional market for materials generated through the region’s forestry sector.
Torrefaction is a thermal treatment process that changes the physical and fuel characteristics of biomass. Torrefied wood pellets can provide characteristics that make them suitable for use as an alternative solid fuel in certain power-generation applications. Their production can also provide a way of converting forestry materials into a standardized fuel that can be transported and stored for energy applications.
CBC’s proposed facility is intended to operate within a sustainable and traceable biomass supply chain. The company’s plans focus on sourcing wood fibre from Northern Ontario, with the objective of establishing a long-term feedstock base for pellet production while generating additional economic activity in the regional forestry sector.
If developed and brought into operation, the Chapleau project is expected to generate employment in the local area. CBC estimates that the facility could create up to 30 direct jobs and approximately 70 indirect jobs over the long term. The employment impact would extend beyond positions at the production facility to include activities associated with forestry supply, transportation, maintenance, services and other parts of the project’s supply chain.
The long-term agreement with NB Power also connects the proposed Ontario production facility with an energy-generation project in New Brunswick. NB Power has identified conversion of the Belledune Generating Station to advanced torrefied wood pellets as its preferred approach for maintaining the station’s contribution to the province’s electricity system while addressing federal requirements related to the phase-out of coal-fired generation.
Belledune, located in northern New Brunswick, has historically played a role in the province’s electricity supply. The planned conversion is intended to enable the generating station to continue operating beyond 2030 while replacing coal with an alternative fuel source.
According to the plans outlined by NB Power, the conversion is intended to support several objectives, including electricity-system reliability, energy security and the development of a lower-carbon electricity supply. The use of advanced torrefied biomass pellets is expected to allow the facility to continue utilizing existing generation infrastructure while changing the fuel used for electricity production.
For Chapleau BioCarbon, the agreement provides a defined long-term demand commitment linked to the proposed facility’s future production. However, the Chapleau project remains under development, with the company continuing to work through the technical, economic and financing requirements associated with the proposed investment.
The agreement therefore represents a commercial milestone rather than confirmation that the facility is already operational. CBC must continue progressing engineering, financing and other development activities before production can begin.
The proposed project also reflects broader efforts to develop renewable and lower-carbon alternatives for industrial and power-generation applications. Biomass sourced from forestry operations can provide a dispatchable solid fuel, while the use of residual wood fibre can potentially create additional value from materials associated with forest-product activities.
The planned supply relationship between CBC and NB Power would establish a long-term connection between Northern Ontario’s forestry resources and New Brunswick’s electricity-generation infrastructure. CBC’s proposed production volume of 75,000 metric tonnes annually represents a substantial long-term biomass fuel commitment under the agreement.
With the contract extending through March 31, 2040, the arrangement is structured around sustained fuel demand over multiple years. For NB Power, the agreement supports planning for the Belledune conversion, while for CBC, it provides a potential long-term customer as the Chapleau project moves through its development stages.
Chapleau BioCarbon will continue detailed engineering, financing and related development work as it seeks to advance the proposed torrefied biomass facility. The company’s progress will determine the next stages of the project and its ability to establish the planned production capacity.
The agreement with NB Power consequently represents an important step in CBC’s efforts to develop a Northern Ontario torrefied biomass production operation and establish a long-term market for its proposed advanced wood pellet output.
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