Opasatika assessing fibre supply for a biomass facility.

Recent funding from the provincial government is allowing the small township of Opasatika to move forward with its efforts to recover from the devastating blow it was dealt following the closure of the local Tembec mill last June.

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A $181,000 cash infusion through FedNor has helped to foot the bill for two important elements of the township's plan for economic recovery. Of that total, $83,000 is being used to hire a project manager and an assistant to help attract industrial tenants to the area and to develop related private-sector projects.

The remaining $98,000 is being provided so that Opasatika can hire a consultant to conduct a feasibility study to analyze the volume, characterization and availability of forest scrap within a 200-kilometre radius of the township.

The findings from this study would determine the potential for a cutting-edge biomass processing facility in the 69,000-square-foot former Tembec site. Nearly 150 jobs could be created by the project.

This facility would be established by Cyclofor, a biotechnology company based in Palmarolle, Quebec which has already established similar plants in its home province. Having already signed a memorandum of understanding with the township, Cyclofor is now seeking funding for the Opasatika-area project, as well as approval from the Ministry of Natural Resources for the use of a patented technology, which converts wood waste into chips.

However, Cyclofor and local officials are unable to move forward without the feasibility study, and so Opasatika has hired CAF, a Quebec-based forestry engineering firm.

"We need the feasibility study before we can move along, so that should be in the next couple of months," says Paul Nadeau, project manager for the township.

While he was not at liberty to discuss the nature or names of those involved, Nadeau says a number of companies have already signed memorandums of understanding and are currently in negotiations regarding the potential of setting up shop within or around the former Tembec facility.

"We've moved along quite a bit since February, but there's still a fair bit to go," says Nadeau. "There are quite a few projects in the works, but there's really nothing concrete right now."

While these other companies would represent a boon for the local economy, their presence hinges entirely on the establishment of the biomass facility. This further highlights the importance of seeing the project move forward, says Nadeau.

"We're concentrating our efforts on Cyclofor, and we have a few dependencies that can come from them," he says. "If they establish something here, we can establish different companies alongside them. The biggest piece of the puzzle is getting them set up so we can move forward with the other projects."

The prior lack of funding has stalled the project's progress until recently, meaning that there is still no projected start-up date for the construction of the biomass processing facility.

The need for the community to diversify the local economic presence is increasingly important as the populace of 325 continues to struggle with the loss of the 78 jobs provided by the mill, not to mention the $2 million in annual revenues.

Outmigration has already begun, and houses have gone up for sale for as little as $5,000 to $10,000 as some locals begin to feel the economic squeeze.

"It's incredibly important that Cyclofor sets up here," he says. "The community took a real blow when the Tembec mill closed. There's really nothing here to support anybody, unless you're retiring, so people really need this down here."

By NICK STEWART

Northern Ontario Business