CALGARY, Alberta, Jan. 12, 2026 (GLOBE NEWSWIRE) — POWERWOOD Canada Corp {“the Company”} has agreed the purchase of 175 acres of land in northern Alberta from Mackenzie County to construct a rail spur for transporting advanced black biofuel pellets to Canada’s tidewater.
The parcel of land, located in Mackenzie Highway Industrial Area near High Level, will see 3500m (11,400ft) of track looped and linked to the county’s main freight rail system. It will support loading and locomotive depots and serve open-top unit trains (of 100 x 60ft cars) with advanced black pellets from two production facilities to be located in the county. Plans show the company’s rail spur joining Canadian National Railway Company track on the Hay River Line between Hay River, NWT and Roma JCT, AB.
Calgary-based PowerWood Canada Corp agreed its CAD$1.1M land acquisition from Mackenzie County in late December 2025 and will break ground on its ‘Peace River’ plant east of La Crete in late spring 2026. The company’s second ‘Hay Meadow’ plant will be constructed south of High Level in 2027.
The purchase represents the final asset needed by PowerWood Canada Corp to commence construction of its first ‘Peace River’ pellet plant, capable of manufacturing 350,000 tons of advanced black pellets by steam explosion each year. Purchase of the facility’s annual offtake is already agreed on a 10 year ‘take or pay’ basis with a leading Japanese energy corporation.
PowerWood Canada Corp’s CEO David Peters, said: “We are delighted to have purchased this land from Mackenzie County and thank all at the Council who have helped to facilitate its acquisition.
“The purchase enables us to integrate an essential rail spur into the development of two black pellet production facilities in the county, and connect them to Alberta’s freight railway system and Canada’s seaports. It also give us confidence to commence the construction of our first biofuel plant, to be located close to Peace River, in the first half of 2026.
“The acquisition represents part of a substantial long term investment into Mackenzie County, by PowerWood Canada Corp, which will create significant boosts to the economy and employment in the region over a sustained period. Everyone at PowerWood Canada Corp is looking forward to working closely with those living in and around La Crete and High Level, so all can benefit from our company’s contribution to the local area.”
When completed, the company’s manufacturing facilities will be the only in Canada to use advanced steam explosion technology to produce ‘next-gen’ steam-treated black pellets – with superior mechanical strength, bulk density and water resistance to white and torrefied wood pellets. Steam-treated black pellets are regarded as the only true direct ‘drop in’ replacement for coal as generating stations require none of the storage, handling and furnace modifications needed to burn each preceding generation of wood pellets.
When fully operational, the plant facilities are expected to support more than 500 new jobs across both of their supply chains, and will use only wildfire-damaged dead wood and diseased timber harvested from northern Alberta’s forest as feedstock for manufacturing the advanced biofuel. The company will also operate reforestation programmes in cleared areas to expand Canada’s boreal carbon sink.
Mackenzie County Reeve Josh Knelsen, said: “This is a leading-edge, first-of-its-kind project in Canada that turns wildfire-damaged wood into clean energy and helps reduce reliance on coal. These two facilities represent hundreds of millions of dollars in private investment and the potential for up to 300 direct jobs, with many more across forestry, construction, transportation, and local businesses.
“One site, east of La Crete along the Highway 88 connector, is shovel-ready with services already in place and is expected to move toward construction by mid-2026. A second site, south of High Level along Highway 35, is to be used for shipping finished product by rail as well as a second production facility.
“I also know this announcement comes at a time of uncertainty for some in our region. This project is encouraging news and a step toward diversification and long-term resilience in our forestry economy. Thank you to Council, administration, industry partners, and the many people across our region whose hard work and commitment helped move this forward.”
PowerWood Canada Corp recently acquired 175 acres of land from Mackenzie County for CAD$1.1M, and the company is preparing it for the construction of a 3.5km rail
spur to transport advanced steam-treated black pellets for export from Canada’s seaports.
Additional Info
PowerWood Canada Corp is a subsidiary of UK-based CoAlternative Energy Ltd., based in Calgary’s Canada Trust Tower (T2P 4K9), AB, with manufacturing facilities planned for several sites in multiple Canadian Provinces. The company will produce of best-in-class advanced black biofuel pellets that serve as a low-emission ‘drop in’ replacement for coal burned in the world’s power stations, steel mills and industrial factories. Each PowerWood pellet facility will operate industrial engineering giant Valmet’s patented steam explosion ‘BioTrac’ system. (Laboratory tests show, when ignited, its premium black biomass pellets release 87.5% of the energy of coal while producing just 6% of the carbon dioxide of coal.) They will also produce bio-based chemical furfural for the North American market as an alternative to petrochemicals, and nutrient-dense, carbon-based soil substrate as an alternative to peat-based substrates for both North American and EU markets. To date, PowerWood Canada Corp has invested CAD$40m of seed funding capital in its Alberta pellet project, raised from founders and shareholders.
Valmet’s BioTrac steam explosion process differs from torrefaction by exposing raw cellulosic materials to 240°C steam under pressure before rapidly depressurizing the feedstock to granulate the matter and release its lignin, critical to providing a natural binder during pelletization. The granulated organic matter and lignin (eroded by torrefaction) is subjected to extreme compression during pelletization to create superior mechanical strength, water resistance and bulk density in the advanced low-emission pellets produced. Sugars, also expelled by the process, are converted into the bio-based chemical furfural as a byproduct of Valmet’s industrial engineering technology.
For more information about this company update please contact:
PowerWood Canada Corp. CEO David Peters on (+0044) 7802 785285 or [email protected].
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3cff16eb-3791-48d9-9e8d-c22a5c4a0998
