N.S. government awaiting news on feasibility study for new pulp mill in Liverpool

Nine months after officials with Northern Pulp began exploring the possibility of constructing a new mill in Queens County, Premier Tim Houston has confirmed that the work is still ongoing.

Last May, Houston announced a settlement agreement between his government and Northern Pulp’s parent company, which marked the end of a long legal dispute and allowed for an examination of the feasibility of building a new mill at or near the former Bowater mill site near Liverpool. The company set a condition that any new mill must generate an internal rate of return of more than 14 percent.

During a recent press briefing, the premier stated that he believes the company is still in the process of completing its feasibility study. While company officials are eager to move forward and see a strong business case, they are still analyzing financial data and exploring potential financing options.

Houston mentioned that he has not yet received a formal request for financial assistance from Northern Pulp. The company is reportedly at the financing stage, evaluating different financing possibilities to support the construction of a new mill.

The closure of the Northern Pulp mill in Pictou County in 2020 was a result of the company’s inability to secure provincial approval for a new effluent treatment facility. This required a replacement after the legislature passed the Boat Harbour Act, terminating Northern Pulp’s lease to use the estuary for effluent treatment.

Following the closure, the company filed for creditor protection, leading to legal disputes that were resolved with the settlement agreement announced in May. Natural Resources Minister Tory Rushton revealed that company officials are expected to submit additional paperwork next week as part of the creditor protection proceedings in the British Columbia Supreme Court.

Rushton emphasized the importance of finding alternative markets for pulpwood and low-grade wood products previously consumed by Northern Pulp. While a new pulp mill could address this need, other options like biofuels, aviation fuels, and biomass power plants are also being considered.

A new mill would significantly impact the forestry sector, providing opportunities for woodlot owners and workers in the industry. Both Rushton and the premier expressed optimism about the potential benefits of a new mill in the province, highlighting the importance of the forestry sector to Nova Scotia’s economy.

The development of a new mill is eagerly anticipated by industry stakeholders, and efforts are underway to ensure a sustainable and environmentally-friendly solution for the region. The government remains committed to supporting the process and creating a pathway for a new era mill that aligns with the province’s economic and environmental goals.