NEWP & Norbord Reach Deal To Build Pellet Plant

New England Wood Pellet LLC (NEWP) and Norbord Inc., a producer of wood based panel products, have reached agreements for NEWP to acquire Norbord’s land and property in Deposit, New York and start construction of a new wood pellet manufacturing facility. NEWP and Norbord expect to close on the purchase and sale of Norbord’s land and property by November 6. Terms of the agreement are confidential.

Norbord plans to manufacturing medium-density fiberboard at the facility until sometime before the closing. NEWP will then begin significant site modifications, to include construction of a 100,000 ton-per-year wood pellet manufacturing plant once all state and local permits are secured.

NEWP expects to ship pellet fuel from the Deposit facility both in bags for residential use, and in bulk for central heating of homes, commercial buildings and for industrial process heat.

“We are excited to work with Norbord toward the transition of this long-time wood product manufacturing facility to a new and exciting era of renewable biomass fuel manufacturing,” said Steven Walker, president and CEO of NEWP. “The Deposit plant represents an attractive growth opportunity for our company because of its outstanding location relative to northeastern demand for pellet fuel, its well-established wood supply, its excellent highway and rail access, and its exceptional labor force. We look forward to working closely with Deposit officials and local citizens to ensure a smooth and successful transition.”

The demand for wood pellet fuel is expected to increase in the northeastern U.S. as consumers move toward renewable energy resources, and as state and federal governments enact policies to reduce demand for foreign fossil energy for heating and to promote low carbon energy resources.

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