A six month contract extension has been granted between the Calstock Biomass Power Plant and the Ontario Electricity Financial Corporation. The 20 year contract was scheduled to expire on June 4th but are continuing to work out a longer extension to the agreement. Hearst Mayor Roger Siguoin says the reprieve allows them time to get something done.
“I hope we can get a deal done,” says Siguoin. “If not I just hope the government will be patient and say yes you are headed in a good direction we can extend the deadline a bit more. It’s not my call it will be their decision.”
Sigouin says situation with the Calstock plant is just the beginning and other facilities like that could be in jeopardy.
“The one in Hornepayne could be the next one that goes through the same issues we are,” he said. “The cost of producing electricity is too high and we have to find a solution to put the price down.”
The Calstock Biomass Power Plant is important to the region, employing 20 full-time jobs as well as other numerous spin-off jobs to those who supply wood waste to the plant.