New deal will keep Atikokan biomass plant running for next 5 years

A new agreement between Ontario Power Generation (OPG) and the Independent Electricity System Operator will keep the Atikokan Generating Station running for the next five years, the province said.

The deal, which was announced Friday in Thunder Bay, will also keep 400 people employed at the plant, which is the largest 100-per-cent biomass facility in North America.

"We definitely need to generate more energy, more clean, affordable energy," Ontario Minister of Energy and Electrification Stephen Lecce said at the announcement, adding that power demand in the province is forecasted to grow by 60 per cent over the next 25 years.

"Certainly nuclear energy will play a critical role, but we're supporting biomass and renewables," he said. "We're expanding every form of generation, because we need to produce more affordable energy for our people, for our industry and as we electrify the economy."

"Biomass has a critical role."

Atikokan Mayor Rob Ferguson said the announcement was "huge" for the town.

"OPG's been there for over 40 years, and it's an anchor tenant for us," he said. "To get this five-year reprieve is nice, but on Monday we start working on the next one."

"So many jobs are intertwined with Ontario Power Generation," Ferguson said. "We produce the pellets in Atikokan, as well."

"All the vendors and everybody that supports the station is really dependent on this. Without Ontario Power Generation, the town would look a lot different."

Kevin Holland, Ontario associate minister of forestry and forest products and MPP for Thunder Bay-Atikokan, said biomass will be very important to the provincial forestry industry.

"it's going to be a huge supplier of energy in our province," Holland said. "It's a critical component of the forestry sector moving forward, and our government recognizes that."

The Atikokan plant was converted from coal to biomass in 2014.