Conifex Timber will invest C$45m ($46m) to build a biomass energy facility, which will be connected to the saw mills in Mackenzie, British Columbia.

The biomass plant that will feature a 36MW steam turbine, is expected to produce 230GWh of energy per year, using waste fibre from the mills and nearby timberlands as fuel, reports Reuters.

The firm is negotiating on a power purchase agreement with BC Hydro and expects to bring the plant onstream by summer 2012.

Conifex was launched in 2008 with the purchase of the Fort St. James sawmill in northern British Columbia.