Province signs Letter of Intent with Kruger Inc. to extend power purchase agreement
The province has signed a letter of intent with Kruger Inc., the owner of Corner Brook Pulp and Paper Ltd., to continue discussions related to its diversification plan, specifically a long-term power purchase agreement between the company and Newfoundland and Labrador Hydro.
The province plans to extend the current interim power purchase agreement between Newfoundland and Labrador Hydro and Corner Brook Pulp and Paper Ltd. for 12 months, beginning July 1, 2026, and ending June 30, 2027. Government is also prepared to discuss a long-term agreement to provide additional certainty for Corner Brook Pulp and Paper Ltd.’s sustainability and potential growth.
The company will continue to develop wood supply agreements with provincial commercial sawmill operators and expand investments in silviculture to support sustainable harvesting. Corner Brook Pulp and Paper Ltd. will continue to operate its mill with one paper machine and maintain its current workforce while the letter of intent is in effect. The parties also agree to explore implementing the company’s long-term diversification project.
The letter of intent is available here.
“Ensuring a stable and reliable supply of energy is critical to the long-term success of our province’s industries. Extending our interim agreement will provide the time and certainty needed to work toward a long-term solution that supports Corner Brook Pulp and Paper Ltd.’s operations and protects jobs,” says Lloyd Parrott, Minister of Energy and Mines. “We look forward to continued collaboration with Kruger to advance a sustainable path forward for the company and for all of us.”
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