An undated aerial photo of the former Bowater Mersey plant in Brooklyn. (Queens County Historical Society Photo Collection, housed at the Queens County Museum)

UPDATED March 11, 6:30 p.m. 

Northern Pulp says it’s struggling to make a business case for a new mill in Liverpool.

As part of a settlement agreement reached with the Nova Scotia government in May 2024, Northern Pulp launched a nine-month feasibility study into a new bioproducts mill in Queens County.

The province has agreed to give the company a five-week extension as it tries to figure out whether a new kraft pulp mill is viable in the area.

In separate statements released Monday night, both the province and Northern Pulp parent company Paper Excellence said the company hasn’t yet been able to make a business case for a successful mill.

Nova Scotia’s Natural Resources Minister Tory Rushton told QCCR on Tuesday that the province has worked with Paper Excellence for the past nine months on the study.

He said the province needs a processor for the forestry sector’s pulp wood. 

“We know we need a home for the low-grade wood fibre but at the end of the day, this is going to be a business decision from their part,” Rushton said.

“We’re willing to work with them to meet the environmental standards of a new-era mill that would find a home for ecologically produced forest products. I don’t want to speculate what the next five weeks may bring, but we’re supportive of this extension.”

Paper Excellence, owned by forestry giant Domtar, estimates a new mill would cost $2.5 billion in government and private funding to design and build. And it would require a rate of return of 14 per cent, as outlined in the settlement agreement.

The company’s statement said that while the proposed new facility doesn’t meet that threshold, it plans to look for more financing in the next five weeks to get the project going.

“As of today, the proposed new facility’s (rate of return) does not meet the threshold (rate of return),” the company said in the statement.

“However, the company will use the extension period to continue working to identify and evaluate potential financing opportunities to benefit the project.”

Rushton said he’s hopeful the company can make it work.

“At the end of the day, we’ve taken all the measures we can to support their information and allow them to make an educated decision. So we’re certainly hopeful there could be a postiive outcome in this.

“There are different companies that are looking at using wood fibre for renewable biofuels, renewable aviation fuels, things that have to utilize bioproducts from ecological forestry practices. So we’re interested in having a conversation with anyone that wants to come and have a conversation about using our bioproducts from forestry activities.”

Ashley Christian, president of the South Queens Chamber of Commerce, said she wasn’t surprised by the delay.

“I think there’s so much uncertainty in the economy at the moment and certainly a bioproducts mill would be affected by any potential tariffs that could still exist by the time this mill would be operating,” she told QCCR on Tuesday. “I’m not surprised that Domtar wasn’t ready with a decision. And I anxiously await May and for them to publish that decision.”

Christian said local reaction to a new mill in Queens County remains mixed.

“I think that residents recognize the potential economic impact of a mill in our county, however on the flip side recognize the potential environmental and health concerns as well. So I echo the concerns of our residents and agree with them. … I think (the feasibility study is) just the first part of this. That’s when the real work begins as citizens and for the business community to advocate for Queens County and the health of our environment here.”

According to Northern Pulp, the feasibility study looked at a mill that would produce kraft pulp, as well as biogas and biochemicals used in food, pharmaceuticals, cosmetics and adhesives. The study also considered green energy projects, including a plan for carbon capture and storage.

Last May, Premier Tim Houston announced a deal with Paper Excellence. That was to settle the company’s $450-million lawsuit against the province after Northern Pulp was forced to close its mill in Pictou County in 2020 because of environmental concerns.

The company has been under creditor protection since the shutdown. 

A hearing is scheduled in British Columbia Supreme Court for Friday (March 14) under the Companies’ Creditors Arrangement Act so that the company can ask for the five-week extension to find more funding for the project.

Bowater operated a pulp and paper mill in Brooklyn from 1929 to 2012, over the years employing thousands of people in Queens County.

When it closed, it threw 320 people out of work.

Email: rickconradqccr@gmail.com

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An undated aerial photo of the former Bowater Mersey plant in Brooklyn. (Queens County Historical Society Photo Collection, courtesy of the Queens County Museum)

It will likely be March before Queens County residents find out whether Liverpool will once again be a mill town.

Last May, Nova Scotia Premier Tim Houston said the region could be the home for a new kraft pulp mill. It all depends on whether forestry giant Domtar, which operates Paper Excellence, believes there’s a business case for it.

Nobody from Domtar or the provincial government would do an on-air interview this week. But in emailed statements, both the company and Natural Resources Minister Tory Rushton said more will be known in March.

Domtar said in its statement that it’s in the final stages of a feasibility study into a new mill.

“Our team continues to work with the Province of Nova Scotia and is in the final stages of establishing a business case for building a new bioproducts mill in Liverpool.”

Rushton said in his statement that the province is open to more natural resource development, adding the province believes a new mill would be a good fit for Liverpool. 

“Our interest is in the economic potential for our forestry sector and the province — creating good paying jobs, construction investment and strengthening the overall supply chain. Success in our resource sectors means success for our whole province.”

Last May, the premier announced a deal with Paper Excellence to settle the company’s $450-million lawsuit against the province after its subsidiary Northern Pulp was forced to shut down its mill in Pictou County in 2020.

As part of that deal, Paper Excellence launched a nine-month feasibility study into whether a Liverpool mill is viable. 

“The province has agreed to support Paper Excellence in the idea of building a new kraft pulp mill in Queens County, in the areas around the former Bowater mill,” Houston told reporters last May. “With the support of the region’s forestry sector, the company believes that Liverpool could again support a new mill, and I agree.

“If there is a business case and the company brings forward a project, it could mean an investment of more than $1.4 billion in our economy and that’s just to build a new mill. Let me assure Nova Scotians that any project that comes forward will need to meet today’s standards and will undergo environmental assessment, significant public consulation and Indigenous engagement.”

Under the court-approved settlement agreement, Domtar’s rate of return over 20 years must be 14 per cent. 

“We assess the estimated cost of construction, delivered wood, start-up and operation, labour, and funding and financing structures, among many other items,” Domtar said in its statement to QCCR.

“We are also assessing the price and market for the pulp and any other bioproducts the mill could produce.”

Houston has recently said the province needs to open up to more natural resource development, especially in light of the tariff threat from the U.S.

Bowater operated a pulp and paper mill in Brooklyn from 1929 to 2012, employing hundreds of people in Queens County. 

When it closed, it threw 320 people out of work. It also affected people in other industries.

Many of the employees retired or left for jobs in western Canada or elsewhere. The region fell into an economic funk. And it took years for the local economy to recover.

When the premier announced the prospect of a new mill last spring, though, local reaction was mixed.

Some local politicians and forestry workers said it would be a welcome boon to the local economy and the industry. Some others, including local business leaders, said they were concerned about the environmental impact a pulp mill would have.

Email: rickconradqccr@gmail.com

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Ashley Christian is president of the South Queens Chamber of Commerce. (Rick Conrad)

The Nova Scotia government announced this week that as part of a settlement agreement, Northern Pulp will study the feasibility of opening a paper mill in the Liverpool area.

We asked some people at the South Queens Chamber of Commerce annual general meeting on Thursday for their reaction.

Here’s what they said. 

An undated aerial photo of the former Bowater Mersey plant in Brooklyn. (Queens County Historical Society Photo Collection, housed at the Queens County Museum)

The pulp and paper industry may be making a comeback in Queens County.

Nova Scotia Premier Tim Houston announced on Thursday that Paper Excellence, which owns Northern Pulp in Pictou County, will be launching a feasibility study into whether it can open a mill in Liverpool.

He was speaking at a news conference in Halifax. His opening remarks were broadcast to a crowd of local politicians, chamber of commerce members and forestry sector workers at the Astor Theatre in Liverpool.

SEE ALSO: Reaction mixed to news of possible new paper mill in Liverpool

The possible new mill in Liverpool is part of a settlement agreement to resolve the company’s $450-million lawsuit against the province.

“The Pictou mill is not reopening,” Houston said. “The province has agreed to support Paper Excellence in the idea of building a new kraft pulp mill in Queens County, in the areas around the former Bowater mill.

“With the support of the region’s forestry sector, the company believes that Liverpool could again support a new mill, and I agree.”

Houston said the company will likely launch the feasibility study in the next few weeks. It is expected to take up to nine months.

“Let’s keep in mind a new mill is not a guarantee. If the company decides not to proceed with the new mill, Nova Scotia’s interests are still accounted for and protected. But if there’s a business case and the company brings forward a project, it could mean an investment of more than $1.4 billion in our economy.”

Bowater, which operated in Brooklyn from 1929 to 2012, employed hundreds of people in Queens County. It was founded as the Mersey Paper Company Limited by industrialist Izaak Walton Killam.

When it closed, it threw 320 people out of work. It also affected people in other industries.

Many of the employees retired or left for jobs in western Canada or elsewhere. The region fell into an economic funk. And it took years for the local economy to begin to recover.

Houston said a new mill would be good news for Queens County and for the province’s 35,000 woodlot owners.

“We are building a stronger economy for Nova Scotians, and a new mill has enormous economic potential. It could kickstart a new chapter for communities along the South Shore and the province’s economy overall.”

Northern Pulp closed its mill at Abercrombie Point, Pictou County, in 2020, after the Nova Scotia government under Stephen McNeil refused its application for a new effluent treatment facility. It had been pumping effluent into nearby Boat Harbour, sparking protests from the Pictou Landing First Nation.

Houston said Thursday that any new mill in Queens County will have to meet modern standards.

“Let me assure you that any project that comes forward will need to meet today’s standards, and will undergo environmental assessments, significant public engagmeent and indigenous consultation. We will also hold the company to a high standard for the Pictou mill site.”

Many of the people at the Astor for the announcement Thursday would not comment afterward. Queens MLA and Public Works Minister Kim Masland declined to comment. She said all media inquiries were being handled by the premier’s office. 

The forestry workers in attendance did not want to be interviewed, but were happy with the announcement and said that the “industry’s needed some good news”.

Mayor Darlene Norman said she was limited in what she could say publicly. 

“For those who understand the forestry sector, this is a wonderful opportunity for Queens.”

The possibility of a new pulp and paper mill in Queens County came to light this week when CBC reporter Michael Gorman reported on Wednesday that an announcement was imminent.

Kerry Morash worked at Bowater for 19 years and was also the Queens MLA for the Progressive Conservatives from 1999 to 2006. He welcomed the news that the industry might return to the area.

“I think it’s a big opportunity for the community and western Nova Scotia,” he said in an intervew. “And especially when you look at the storm damage that we have and we have a lot of wood laying down in the forest from Pictou to Yarmouth and that’s getting drier and getting ready to catch on fire. If we can clean up the forest and produce a product and make some employment, envrionmentally friendly and sustainbably, it’s all good news.”

Ashley Christian, president of the South Queens Chamber of Commerce, said she wants to make sure a mill is safe and sustainable.

“As long as all environmental regulations are being met and taken really seriously, I think that we in Queens County would welcome industry, we welcome jobs and what that would provide for our community.”

As part of the settlement agreement with the province, Paper Excellence has to top up Northern Pulp pension plans by $30 million to protect the former employees’ pensions. It also has to pay $50 million of its own court costs. 

If the company’s study finds a new mill in Queens County is viable, it will pay the province $15 million to settle its $99 million debt. If it finds a new mill isn’t possible, it would pay the province $30 million and pay $15 million toward the cleanup of the Northern Pulp site.

If the company goes ahead with a new mill, it would seek financing and work with the province and others to get it going.

Email: rickconradqccr@gmail.com

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Myrna Gillis, CEO of Aqualitas. The cannabis producer, based in Brooklyn, has been sold to a British firm. (Aqualitas photo)

Queens County cannabis producer Aqualitas has been sold to a British company.

The Brooklyn-based firm has been bought by the London-based Cannaray Limited. Aqualitas will become part of Cannaray’s medical cannabis division, Therismos, which operates in Germany and the UK.

Co-founder and CEO Myrna Gillis said Thursday the deal started being hashed out three years ago. She said jobs are safe at the plant in Brooklyn.

“It’s a great thing for the plant here in Brooklyn,” she said in an interview.

“We have expansion plans that had been on the books for a while, because we effectively had more demand than we had supply or capacity to meet. And we have funds that are earmarked now under this agreement for expansion, so we’re going to have expansion in the Liverpool facility. It enhances our position in relation to jobs and we don’t have any expectation of any layoffs. We expect to be in a position of expansion and growth because of it.”

Gillis would not disclose the value of the deal. But she said the two companies combined for sales last year of $75 million.

Gillis was a lawyer in Bedford when she co-founded Aqualitas in 2014. The company set up its grow-op shop in the Port Mersey Commercial Park, at the site of the former Bowater Mersey pulp and paper mill in Brooklyn in 2017. It employs between 75 and 85 people.

It quickly became recognized around the world for its environmentally friendly aquaponic growing system that uses the nutrient-dense waste of more than 3,000 koi carp fish as fertilizer.

Its products can be found around the world, in the U.S., Australia, Israel, Germany, Portugal and Poland.

The privately held company is certified organic and has won numerous awards and certifications since it was founded. It has also been on the forefront of research into PTSD, insomnia and pain.

“When I look back at that and I think of everything that we’ve accomplished, it’s an incredible story,” Gillis says. “So I’m really proud of what we’ve done, I’m really proud of what I was able to contribute to the team.”

Gillis said the time was right for the marijuana merger. Prices domestically have been going down, while export markets are still paying top dollar for their product. And Germany is set to legalize marijuana on April 1, opening up the international market even more.

“When we got into this industry we were licence No. 87. Now there are more than 950 licences with Health Canada. We had too many companies, too much supply in the domestic market, too many people doing the exact same thing.

“I always had the vision that I wanted to do an exit with a global company because you need to be globally competitive to guarantee your growth and access to markets.”

Gillis will continue as chairwoman of Aqualitas and she will be a member of Cannaray’s board.

Chief operating officer Josh Adler will take over the daily operation of Aqualitas and the current management team will stay in place, Gillis says.

“I think this is good for the community, it’s good for Aqualitas and it’s good for the industry.”

As for Gillis herself, she says she will still be busy with the company she founded with friends almost 10 years ago.

“I have a third act, I’m sure. But right now, there’s a lot happening here during my tenure. But there’s a third act for sure.”

Email: rickconradqccr@gmail.com