The government of Newfoundland and Labrador has issued a non-binding letter of intent to work toward extending Corner Brook Pulp and Paper’s power purchase agreement with NL Hydro for another 12 months.

For mill owner Kruger, the move is an important step toward stabilizing conditions for a proposed $700-million diversification project at the Corner Brook site.

Why the Power Agreement Matters

Corner Brook Pulp and Paper is the province’s only remaining paper mill and remains closely tied to Newfoundland and Labrador’s forestry, sawmill and rural employment base.

A power purchase agreement extension could help provide more certainty around:

• operating costs
• energy planning
• investment decisions
• mill modernization
• long-term site viability

Kruger’s Diversification Plan

Kruger is assessing a major plan to transform the site into a more modern and competitive manufacturing complex.

The proposed project includes:

• infrastructure upgrades
• renewable energy expansion
• hydroelectric facility modernization
• site diversification beyond traditional newsprint

The plan comes as publication paper markets continue facing structural decline.

Strategic Importance for the Province

The Corner Brook mill currently produces newsprint from thermomechanical pulp and operates:

• two hydroelectric plants
• a biomass cogeneration plant
• a woodlands department

This makes the site more than a paper mill. It is an integrated forest products and energy asset.

Industry Insight

The case reflects a broader trend across North America: legacy newsprint mills are being forced to diversify as demand for publication paper declines.

Mills with renewable energy assets, biomass systems and forestry integration may have stronger opportunities to reposition into new fibre-based or energy-linked manufacturing models.

Last Updated on 22/05/2026 by Jota Machinery