THE CANADIAN PRESS
REGINA - A pulp mill in Prince Albert that has been shut down for three years could be redeveloped into a bioenergy plant.
The facility would convert cereal straw into ethanol to be used as fuel.
Energy Minister Bill Boyd says the government has signed a letter of intent with Iogen Energy that could see it buy parts of the mill from Domtar (TSX:UFX).
The project would also include a partnership with Royal Dutch Shell for a "green" power plant producing electricity from forest and ethanol plant residues.
Iogen and Shell are to make a final decision on the multimillion-dollar project after a feasibility study is done.
If the plant goes ahead, the government will take over the rest of the mill and shut it down.
