BC Biocarbon, Dunkley Lumber Ltd. to Build New Biorefinery in Carrot River, Sask.

June 30, 2023

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(Canadian Biomass) A new joint venture between BC Biocarbon and Dunkley Lumber Ltd. will see the construction of a first-of-its-kind biorefinery in Carrot River, Sask.

Natural Resources Canada announced a $10-million contribution to the joint venture, BioLesna Carbon Technologies LP, through the Investments in Forest Industry Transformation (IFIT) program.

The Carrot River biorefinery will use BC Biocarbon’s proprietary processes to convert forest biomass into biochar, bio-oil, wood vinegar and pyrolysis gas. Further refined products can include soil additives, filtration media, electrodes and specialty chemicals.

Peter Popplewell, CEO of BC Biocarbon, said in a news release the company is thrilled to have NRCan’s support to build the biorefinery with Canadian technology. READ MORE

Canada Invests $10 Million in State-of-the-art Biorefinery Conversion in Saskatchewan (Natural Resources Canada)
Unique, All-Canadian Biorefinery Starting In Carrot River, Sask. (Daily Oil Bulletin)

Excerpt from Natural Resources Canada: As we move toward a prosperous, low-carbon economy, Canada is supporting sustainable and innovative tools and technologies that make the best possible use of our resources. By leveraging existing strengths and deploying state-of-the-art technologies in our forest sector, we can lower emissions while simultaneously increasing efficiency, enhancing competitiveness and creating sustainable jobs.

Today, the Honourable Jonathan Wilkinson, Minister of Natural Resources, announced a $10 million contribution to BioLesna Carbon Technologies LP, a joint venture between BC Biocarbon and Dunkley Lumber Ltd., for a new biorefinery in Carrot River, Saskatchewan. The contribution comes through the Investments in Forest Industry Transformation (IFIT) program, which aims to support Canada’s forest sector resilience through targeted investments in advanced technologies and products.

The Carrot River Biorefinery will utilize BC Biocarbon’s proprietary processes to convert residual biomass from forest operations to produce four initial products: biochar, bio-oil, wood vinegar and pyrolysis gas. These materials can then be further refined into value-added products such as soil additives, filtration media, electrodes and specialty chemicals. Based on the project’s ability to substitute products derived from non-renewable sources and the carbon sequestration capacity of the biochar produced, carbon removal credits may also be generated.

Through this project, BioLesna Carbon Technologies LP will create local employment for the Carrot River community and surrounding areas. The Carrot River Biorefinery will also contribute to increased scale-up production and monetization of low-grade feedstock, as well as improve the utilization of forestry-based residuals and increase the diversity of forest products.

The Investments in Forest Industry Transformation program facilitates the adoption of transformative technologies and products by bridging the gap between development and commercialization. The IFIT program aims to create a more competitive and resilient forest sector with a focus on low-carbon projects that result in new or diversified revenue streams.

Through investments just like this, Canada is supporting and diversifying our forest sector in the implementation of more sustainable solutions and technologies that will increase competitiveness, drive growth, lower emissions and grow the economy.

Quotes

“Canada’s forest sector supports livelihoods and drives economic growth in communities across the country. Once operational, this biorefinery in Carrot River will allow residual materials to be further utilized as value-added products, thereby reducing waste and increasing sustainability. Smart investments like this one will ensure the diversification of the sector, providing new economic opportunities for local communities and sustainable jobs for workers.”

The Honourable Jonathan Wilkinson
Minister of Natural Resources

“At BC Biocarbon, we are thrilled to have earned the confidence and financial support of NRCan to build this first of its kind facility in Canada using Canadian technology. By supporting BioLesna’s project, NRCan has demonstrated their commitment not only to the continued technological evolution of the Canadian forest industry, but also to the importance of continued Canadian leadership in the development and deployment of leading-edge technologies that perform carbon removal and sequestration on an industrial scale.”

Peter Popplewell, CEO, BC Biocarbon

“The conversion of residual biomass into innovative products like biochar is a great step forward in the evolution of Canada’s wood products industry. We’re proud to be part of this Canadian-made solution to a decades old challenge and look forward to seeing many similar installations over the coming years.”

Kris Hayman, VP Eastern Operations, Dunkley Lumber READ MORE

Excerpt from Daily Oil Bulletin: A new biorefinery plant in Carrot River, Saskatchewan — which will monetize the residuals produced by Dunkley Lumber Ltd. and eliminate the use of beehive burners to set fire to them — is in the midst of commissioning and will start production in January of next year.

BioLesna Carbon Technologies LP — a joint venture of BC Biocarbon and Dunkley Lumber Ltd. — will initially process 2.5 metric tonnes of biomass per hour (MT/hr) in Phase 1, with the plan to scale up to 10 MT/hr by 2026, according to the CEO of BC Biocarbon, Peter Popplewell.

“Not only is it the first such facility in Canada, it’s the first of its scale worldwide, with [processing of] 10 MT/hr,” noted Popplewell. “And there’s no reason to stop there.”

The original start date for full capacity was somewhat delayed, in part by COVID-19-related issues, he says — it was meant to be up to 10 MT/hr at the end of 2025.

Currently the equipment is on-site at the 10,000-square-foot facility in Carrot River, with the wheels turning on the carbonizer, combustor and dryer, which are the three main components of the facility, states Popplewell. He adds the hardest part is starting up or shutting down the facility. “Like a steam engine — slow to go and slow to stop.”

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“This is a fully Canadian operation,” says Popplewell. The equipment was designed in Canada and manufactured in B.C., then shipped to Carrot River.

“We are Canadian through-and-through, and we are really happy the government stepped up to support this. It was nice given the pull of the U.S.”

BC Biocarbon first started investigating the technology in 2011 and continued to increase its capacity up to the current 1 MT/hr project at its McBride, B.C., headquarters as of 2018. The Carrot River facility will be a scaled-up version of that at McBride. The engineering and schematics were started in 2022 and it took six months to manufacture the equipment and ship it to Carrot River by July 2023, adds Popplewell.

“The pieces of equipment are new and haven’t been built before for a two-tonne facility. It’s a new kit we are commissioning, so it’s a lengthy process. There have to be security checks and balances, mechanical tweaks, etc.”

Meanwhile, Dunkley Lumber has a lot of biomass material piling up waiting to be processed, he says. Processing of 10 MT/hr will keep up with the biomass coming out of the lumber mill, but more than 10 MT/hr would actually have to be processed to catch up on the amount being produced, he adds.

In the Carrot River facility, the biomass will all be processed on-site, with the resulting product then shipped out of Carrot River to consumers.

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When the Carrot River facility is done, the company will turn its attention to considering a similar facility at Dunkley’s plant northwest of Edmonton, which has a similar supply of residuals, states the CEO.

Popplewell came into the story about two years ago in early 2022 to help founder of BC Biocarbon, Phil Marsh, build the company, including starting joint ventures. Marsh is still heavily involved in the company.

“Phil and Dunkley found each other around 2021, which is the year the companies began with due diligence,” states Popplewell. The new entity, BioLesna Carbon Technologies, was formally formed in spring of 2022.

The biorefinery at Carrot River will be operated by BioLesna, as will any facility north of Edmonton eventually.

There are a lot of eyes on the Carrot River plant, says Popplewell, with many companies facing similar pressure to deal with their residual fibre responsibly and clamoring for a solution. READ MORE