ST. JOHN’S, Newfoundland and Labrador — NL Hydro has extended its power purchase agreement with Corner Brook Pulp and Paper for another year, providing continued energy market support while the provincial government evaluates Kruger’s proposed C$700 million modernization plan for the mill.

The extension keeps the existing agreement in place until June 30, 2027, allowing the utility to purchase additional electricity generated by the mill while providing greater operational certainty during the review period.

Expanded Power Purchase Agreement

Under the renewed agreement, NL Hydro will purchase up to 280,000 megawatt hours (MWh) of electricity from Corner Brook Pulp and Paper at C$187 per MWh.

The original agreement, signed late last year, covered 140,000 MWh and was scheduled to expire at the end of June 2026.

By extending the arrangement, the province maintains access to additional electricity generation while supporting one of Newfoundland and Labrador’s largest industrial facilities.

Supporting Mill Modernization

The extension is intended to provide time for the provincial government to assess Kruger’s long-term investment proposal for the Corner Brook operation.

Kruger has proposed investing approximately C$700 million to revitalize the pulp and paper mill, although details of the modernization plan are still under government review.

The proposed investment is expected to improve the facility’s long-term competitiveness while supporting employment and industrial activity in western Newfoundland.

Strategic Importance

Corner Brook Pulp and Paper is one of the province’s largest manufacturing employers and an important contributor to Newfoundland and Labrador’s forest products industry.

The mill also generates electricity through its operations, allowing surplus power to be supplied to the provincial grid under agreements with NL Hydro.

The extended power purchase agreement provides both parties with greater stability while discussions continue regarding the future of the mill and potential large-scale capital investments.

If approved, Kruger’s modernization project would represent one of the largest industrial investments in Newfoundland and Labrador’s forest products sector in recent years, strengthening the mill’s long-term position within Canada’s pulp and paper industry.

Last Updated on 08/07/2026 by Jota Machinery