175-acre Mackenzie County site to connect Alberta’s next-gen black pellet plants to Canada’s tidewater
PowerWood Canada Corp has finalized the purchase of 175 acres of land in northern Alberta from Mackenzie County to construct a rail spur that will transport advanced black biofuel pellets to Canada’s tidewater for export.
The land parcel, located in the Mackenzie Highway Industrial Area near High Level, will host a 3,500-meter (11,400-foot) track loop connected to the county’s main freight rail system. The spur will accommodate open-top unit trains of 100 cars, each 60 feet long, carrying advanced black pellets from two planned production facilities in the region. The spur will link to Canadian National Railway’s Hay River Line between Hay River, NWT, and Roma Junction, AB.
Calgary-based PowerWood Canada Corp completed the CAD$1.1 million acquisition in late December 2025 and plans to break ground on its first pellet plant—dubbed Peace River—east of La Crete in spring 2026. A second facility, Hay Meadow, will follow south of High Level in 2027.
The purchase marks the final asset required for PowerWood to begin construction of its first plant, which will produce 350,000 tons of advanced black pellets annually using steam explosion technology. A leading Japanese energy corporation has already secured the plant’s entire output under a 10-year “take or pay” agreement.
David Peters, CEO of PowerWood Canada Corp, stated: “This acquisition allows us to integrate a critical rail spur into our development plans and connect our facilities to Alberta’s freight system and Canada’s ports. It gives us confidence to commence construction of our first biofuel plant in early 2026. This represents a long-term investment in Mackenzie County that will boost the economy and create jobs for years to come.”
When completed, PowerWood’s plants will be the only Canadian facilities using advanced steam explosion technology to produce next-generation black pellets. These pellets offer superior strength, density, and water resistance compared to traditional white or torrefied pellets and are considered the only true “drop-in” coal replacement—requiring no modifications to power plant infrastructure.
The facilities are expected to support more than 500 jobs across their supply chains and will exclusively use wildfire-damaged and diseased timber from northern Alberta forests as feedstock. PowerWood also plans reforestation programs to enhance Canada’s boreal carbon sink.
Mackenzie County Reeve Josh Knelsen commented: “This first-of-its-kind project turns wildfire-damaged wood into clean energy and reduces reliance on coal. It represents hundreds of millions in private investment and up to 300 direct jobs, with many more in forestry, construction, and transportation. This is a major step toward diversification and resilience for our regional economy.”