Mackenzie County is set to welcome two new wood pellet manufacturing facilities following the finalization of an agreement with Calgary-based PowerWood Canada Corp.
County Reeve Josh Knelsen announced the deal last week, calling it a first-of-its-kind project in Canada. The facilities will convert wildfire-damaged wood into clean energy, helping reduce reliance on coal while adding a new, value-added energy stream to the region.
The project represents hundreds of millions of dollars in private investment and could create up to 300 direct jobs, with additional employment expected across forestry, construction, transportation, and local businesses.
“This project builds on the energy resources we already develop in the region,” Knelsen said, noting it will complement Mackenzie County’s long-standing oil and gas, forestry, and agricultural sectors.
One of the facilities will be located east of La Crete along the Highway 88 connector. The site is considered shovel-ready, with services already in place, and construction is expected to begin by mid-2026. A second site is planned south of High Level along Highway 35, where it will serve both as a production facility and a rail shipping hub for finished product.
The announcement comes amid uncertainty in the local forestry sector following recent curtailment announcements by West Fraser. Knelsen acknowledged concerns among workers and families, stating that while the project will not replace those jobs immediately, it represents an important step toward economic diversification and long-term stability in the region.
Knelsen also thanked county council, administration, industry partners, and community members for their efforts in bringing the agreement to completion.
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