Northern Pulp mill seeks more time to look into possible ‘bioproducts hub’ in Liverpool, N.S.

Northern Pulp is looking for a stay of proceedings so it can look into the feasibility of a “bioproducts hub” in Liverpool, N.S.

More than four years after the Northern Pulp mill closed and went into creditor protection, it is looking for a stay of proceedings so it can look into the feasibility of a “bioproducts hub” in Liverpool, N.S.

In a news release, Northern Pulp – which is a Paper Excellence company – said it had filed an extension of the stay of proceedings under the Companies’ Creditors Arrangement Act until early May. The company closed its mill in Pictou County in 2020 after it failed to meet the provincial government’s environmental requirements for a new effluent treatment plant, causing it to go into creditor protection.

Northern Pulp says it would use the extended time to continue discussions on the feasibility of a bioproducts hub in Liverpool. So far the company says designing and building a bioproducts hub would could more than $2.5 billion.

As part of a settlement agreement reached between the government and the province last year, Northern Pulp has initiated a feasibility study into a kraft pulp mill.

“The feasibility study examined the economics of developing a bioproducts hub that includes established products such as Northern Bleached Softwood Kraft pulp, as well as emerging products like biogas and biochemicals used in food, pharmaceuticals, cosmetics, and adhesives,” the release reads.

“The company will use the extension period to continue working to identify and evaluate potential financing opportunities to benefit the project. At the same time the company will begin steps to prepare for a sales process of Northern Pulp’s assets if a new mill is not feasible.”

In a written statement, Minister of Natural Resources Tory Rushton said a new pulp mill would be a “game-changer” and said the province agrees with the proposed five-week extension.

“A mill, in the southern end of the province, could fill a necessary and currently missing part of sustainable forestry in this province,” Rushton said.

The motion will be heard in court on Friday.

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