Two Wood Pellet Facilities Announced for Mackenzie County

On December 23, Mackenzie County Reeve Josh Knelsen announced the County has finalized an agreement with Calgary-based Powerwood Canada Corp. that will bring two new wood pellet manufacturing facilities to the Mackenzie Region.

“This is a leading-edge, first-of-its-kind project in Canada that turns wildfire-damaged wood into clean energy and helps reduce reliance on coal,” said Knelsen. “These two facilities represent hundreds of millions of dollars in private investment and the potential for up to 300 direct jobs, with many more across forestry, construction, transportation and local businesses.”

One site, east of La Crete along the Highway 88 connector, is shovel-ready with services already in place and is expected to move toward construction by mid-2026.

A second site, south of High Level along Highway 35, is to be used for shipping finished product by rail as well as a second production facility.

“I also know this announcement comes at a time of uncertainty for some in our region. Recent announcements by West Fraser regarding future curtailments have raised understandable concerns for workers and families who have long been the backbone of our forestry communities,” said Knelsen. “This project does not replace those jobs overnight, but it is encouraging news and a step toward diversification and long-term resilience in our forestry economy.”