Newsprint maker Abitibi-Consolidated and utility holding company Fortis have signed a US$43M deal to raise power production at two Abitibi hydroelectric plants in Newfoundland, Canada. The three-year project will increase annual output at Grand Falls-Windsor and Bishop Falls in Newfoundland by approximately 30% to 600GWh.
Abitibi-Consolidated will use existing output to power its news-print mill at Grand Falls-Windsor, while the additional energy produced will be sold to Newfoundland and Labrador Hydro under a long term agreement. Central Newfoundland Energy, a non-regulated subsidiary of Fortis, will hold a 51% stake in the project, while Abitibi will hold 49%.
