Canada investing $2.5 million towards proposed biofuel refinery in town

By Ken Kellar
Local Journalism Initiative Reporter
kkellar@fortfrances.com

Funding will support Front-End Engineering Design work

The federal government is investing more than $2 million in a project that could see a revolutionary new industry take root in Fort Frances.

In a media event held yesterday, Tuesday, January 7, 2025, at Seven Generations Education Institute’s Rainy Lake campus, Thunder Bay-Rainy River MP Marcus Powlowski made an announcement of $2.5 million that will be going to Wanagekong-Biiwega’iganan Clean Energy Corporation (WBCEC). The investment from the federal government will help fund the Front-End Engineering Design (FEED) phase of a project that is working to establish an industrial plant that will turn local wood waste into low-carbon fuels. WBCEC is an entity made up of the ten local First Nation communities in the southern end of Treaty #3 working in partnership with Vancouver-based Highbury Energy Inc., who made the announcement of their partnership and plans to establish a biofuel refinery in Fort Frances in December 2024.

According to Powlowski, who was making the announcement on behalf of federal Minister of Energy and Natural Resources Johnathan Wilkinson, the investment comes from the Government of Canada’s $11 million investment into clean fuel projects across the country, which aims to create a cleaners and more competitive energy future.

“These initiatives were funded under two programs, the Natural Resources Canada Energy Innovation Program (EIP) and the Clean Fuels Fund,” Powlowski said.

Thunder Bay-Rainy River MP Marcus Powlowski was at Seven Generations Education Institute’s Rainy Lake campus on Tuesday, January 7, 2025, to announce funding from the Government of Canada’s Clean Fuels Fund (CFF) to support a Front-End Engineering Design (FEED) study towards the construction of a biofuel refinery in Fort Frances. – Ken Kellar photo

“The aim of both of these funds is to enable the shift to more affordable, lower carbon fuels, lower carbon meaning that for the burn and energy, there is less new carbon put into the atmosphere, and this is in an effort to further develop high potential, alternative energy sources, one of those being hydrogen.”

Powlowski explained that the WBCEC project being funded through the government of Canada is to conduct a FEED study for a commercial fuel plant in Fort Frances, which will aim to produce renewable, low carbon intensity transportation fuel, “including sustainable airline fuel, renewable diesel and renewable naphtha using wood waste and fibre from the Boundary Waters forest.”

“The idea of low carbon fuels is, you’re using existing carbon which is already in the ecosystem as a fuel source, rather than taking it out of the ground and producing new carbon that’s going into the air,” he said.

“The government has made a number of investments, and part of my job here is to announce a few of these other investments that are something like this, which again attempts to produce biofuels made from things that are more environmentally friendly. I think the other thing our government has been trying to do in the green transition is, yes, address climate change, but use this as a real economic opportunity because countries around the world are going green. There is a realization even with big business, that if we continue to use natural gas and carbon fuels we will continue to contribute to global warming and this in the long-term is not sustainable if we want a world that we can live in.”

Powlowski noted he felt that the shift in industry to green technologies like biofuel production is a modern equivalent to the industrial revolution, meaning those who get in on the ground floor of the technology will be able to leverage it to their advantage economically. He noted that when mills closed in the region, some of those who lost their jobs turned to the oilsands in Alberta for work, adding that new facilities like the proposed biofuel plant would help to create jobs that would keep people in the region.

In a previous press release from the WBCEC, president and Mitaanjigamiing First Nation chief Janice Henderson noted the high demand for biofuels across different industries and the benefits that demand could have for the region.

Highbury Energy Inc. CEO Len Bykowski, left, and Thunder Bay-Rainy River MP Marcus Powlowski spoke to media regarding the proposed biorefinery that the Wanagekong-Biiwega’iganan Clean Energy Corporation (WBCEC) is planning to build and operate in Fort Frances. The project is expected to see shovels in the ground at the beginning of 2026, and its modular design means construction should be complete within 15 to 18 months, with the plant becoming operational in mid-2027. – Ken Kellar photo

“Transportation companies, railways, airlines, and heavy truck operators are increasingly seeking low-carbon fuel sources to meet stricter emissions regulations,” Henderson said.

“Our proposed biorefinery could sustainably produce 20 million litres of low-carbon fuels annually using regional wood waste, offering both environmental benefits and competitive pricing for these sectors.”

Highbury Energy CEO Len Bykowski said the FEED is one of the first steps along the path to opening the facility. They have so far completed a feasibility study for the project, and that this is the next phase. If all goes according to plan, he said the work should be completed by March or early April of this year, which would allow a financial investment decision to be made in May.

“We’re already well into the [FEED] phase of it, and all indications are looking good,” Bykowski said.

“Solid green lights going forward. Based on a successful outcome in the middle of April, then the investment decision to move forward on the project overall can then be made. Once that’s made in probably May of 2025, then immediately the financing has to be completed and concluded for that project, because now you’ve got all your ducks in a row. Then once that’s done, then an EPC [Engineering, Procurement and Construction] contractor is engaged.”

Bykowski said that phase and the final engineering work for the project should be complete by the end of 2025, which would allow a groundbreaking in early 2026 and “15 to 18 months beyond that” for the final construction, as the plant itself will be of a modular design. If all goes according to plan, Bykowski said the plant would be up and running for mid-2027.”

Representatives of the ten area First Nations who are part of the Wanagekong-Biiwega’iganan Clean Energy Corporation (WBCEC), along with various project members, stakeholders and partners posed for a photo at Seven Generations Education Institute’s Rainy Lake campus ahead of the announcement of $2.5 million in funding from the Federal Government to undertake a Front-End Engineering Design (FEED) study for a biorefinery that will take wood waste and other biomass produced by the local forestry industry and turn it into low-carbon fuels for airplanes, trains, heavy trucks and more. The FEED study is currently underway and expected to be complete by April 2025. – Ken Kellar photo

Bykowski said the decision to work with the WBCEC came from the regions willingness to participate with new businesses. Highbury Energy first conducted talks with the Town of Fort Frances to see if they would be willing to host such a plant, with Bykowski noting they found municipal representatives to be open and receptive to the idea. Then, as the area First Nation communities had representation for how the Boundary Waters forest could actually be used, it was determined the best way forward for everyone was to work with all of the First Nations through the WBCEC.

“The fact is that there was a lot of work done on the ground in terms of engaging with the First Nations, and that was all sort of covered,” Bykowski said.

“They’ve all sort of come to the come to the realization that this is a great economic opportunity for them, plus it’s an opportunity to address the environment, plus it’s an opportunity, from an economic perspective, to start generating revenue for the individual First Nations.”

The biofuel plant is currently being eyed for the northeastern corner of McIrvine Road and 8th Street West, and an 80-acre plot has been selected, with environmental testing ongoing to ensure the site will be appropriate.

Bykowski, representatives of the ten area First Nations, project members and other stakeholders were involved in a morning-long meeting regarding the proposed plant yesterday, and he noted that the engagement there was encouraging for the future of the region and the project itself.

“We had a very, very successful meeting this morning,” he said.

“You know, it’s nice to see all 10 First Nations represented. It’s nice to see the whole project team represented here, and some of them on Zoom, and it’s all systems forward. And we’re keen. We’re excited, and nothing’s going to stop us now.”