ST. JOHN’S, Newfoundland and Labrador — The Government of Newfoundland and Labrador has extended its interim power purchase agreement (PPA) with Corner Brook Pulp and Paper Limited for another year, providing additional time to evaluate Kruger Inc.’s proposed diversification plans for the mill while maintaining energy supply flexibility for the provincial grid.

The renewed agreement took effect on July 1, 2026, and will remain in place until June 30, 2027.

One-Year Extension Supports Diversification Review

Under the agreement, Newfoundland and Labrador Hydro (NL Hydro) will purchase up to 280,000 megawatt hours (MWh) of electricity generated by Corner Brook Pulp and Paper at a fixed price of CAD 187 per megawatt hour.

The utility will be able to draw on the mill’s power generation capacity when additional electricity is required, while provincial officials continue assessing Kruger’s long-term diversification proposal for the facility.

The government said the agreement forms part of the commitments outlined in the Letter of Intent signed with Kruger earlier this year.

No Impact on Customer Electricity Rates

Provincial officials confirmed that extending the agreement will not increase electricity rates for residential or commercial customers.

The additional generating capacity is expected to provide NL Hydro with a lower-cost electricity supply compared with previous arrangements while supporting the province’s ongoing energy planning.

Mill Remains Key Employer

Corner Brook Pulp and Paper continues to play an important role in Newfoundland and Labrador’s forestry sector and rural economy.

The provincial government said it remains committed to supporting sustainable economic growth in rural communities while ensuring that the province benefits from its natural resource industries.

Officials also emphasized that reviewing Kruger’s diversification strategy is intended to strengthen not only the future of the mill but also the broader provincial forest sector.

Government Highlights Long-Term Economic Goals

Finance Minister Craig Pardy said the extension provides sufficient time for the government to carefully evaluate Kruger’s proposed diversification plans before making long-term decisions.

Forestry, Agriculture and Lands Minister Pleaman Forsey noted that the agreement supports the province’s commitment to reviewing a diversification strategy that benefits both the company and the wider forestry industry.

Meanwhile, Energy and Mines Minister Lloyd Parrott said the extended agreement will provide additional generating capacity for NL Hydro at a lower cost than previous arrangements while the province completes its assessment of the proposed investment.

The extension reflects the government’s broader strategy of balancing energy security, industrial competitiveness and long-term economic development within Newfoundland and Labrador’s forest products sector.

Last Updated on 13/07/2026 by Jota Machinery