The province has agreed to an extension sought by Northern Pulp to explore the feasibility of a new bioproducts hub in the Liverpool area.
Northern Pulp filed documents requesting the extension under the Companies’ Creditor Act until early May.
Northern Pulp, in a release says it will use the time to continue discussions on the feasibility of the hub and prepare for a potential sale of its assets. The feasibility study is part of a settlement agreement reached between Northern Pulp and the province in May of last year.
The bioproducts hub would include products like Northern Bleached Softwood Kraft pulp as well as emerging products like biogas and biochemicals used in food, pharmaceuticals, cosmetics and adhesives. The study also considered bioenergy initiatives and a pilot project for carbon capture and storage.
In agreeing to the extension, Provincial Natural Resources Minister Tory Rushton says a mill in the southern end of the province could fill a necessary and missing part of sustainable forestry in the province