RAIL HEAD DEAL SPURS PELLET PROGRES
Why a $1.1m land deal in Mackenzie County marks a milestone moment for CoAlternative Energy
CoAlternative Energy recently agreed the purchase of land in northern Alberta ahead of commencing construction on the first of two advanced biofuel pellet plants.
The company remains on schedule to begin building its inaugural steam explosion manufacturing facility in late spring and acquired the land to add a rail head to its Mackenzie County infrastructure.
The plot, located near High Level in Mackenzie Highway Industrial Area, will be key to sending advanced black biofuel pellets to Canada's maritime ports for export.
The planned rail spur incorporates loading and locomotive depots built around 3.5km of looped track, which engineers will join to Canada’s main freight rail system.
The offtake system will accommodate up to 100 open-top carriage units for transferring advanced black pellets to tidewater in freight trains that exceed 1.8km in length.
CoAlternative Energy agreed its CAD$1.1M land acquisition from Mackenzie County in late December 2025, through its Canadian subsidiary corporation Power Wood Canada. It will break ground on its 'Peace River' pellet plant, east of La Crete, in the coming months. A second pellet plant is planned for installation on the newly acquired parcel of land, near to High Level, in 2027.
When fully operational, each pellet plant will be capable of producing 400,000 tons of advanced biofuel by steam explosion every year. They will be Canada’s first to use innovative hydrothermal tech to produce the latest leading-edge pellets for utility-scale global energy infrastructure.
CoAlternative Energy’s CEO David Peters, satisfied with securing the 175 acres to advance company operations, said: “We are delighted to have purchased this land from Mackenzie County and thank all at the Council who have helped to facilitate its acquisition.
“The purchase enables us to integrate an essential rail spur into the development of our black pellet production facilities in the county. It will connect to Alberta’s freight railway system and Canada’s coastal ports.
“Securing this integral parcel of land gives us confidence to commence the construction of our first biofuel plant, to be located close to Peace River, in the first half of 2026.
“CoAlternative Energy is making a substantial long-term investment into Mackenzie County, which will create significant boosts to the economy and employment in the region over a sustained period.
“Everyone associated with our company is looking forward to working closely with those living in and around La Crete and High Level, so all can benefit from our company’s contribution to the local area.”
The site will process durable, water-resistant, energy-dense black pellets made from fire-damaged dead trees harvested in northern Alberta’s forest. Both pellet plants will supply the rail head with offtake.
CoAlternative’s locomotive will undertake the manoeuvring of open-top cars, to be loaded in four groups of 25, before a CN Railway Company locomotive will take all 100 of them across national rail infrastructure. Plans show offtake joining Canadian National Railway Company track on the Hay River Line between Hay River, NWT and Roma JCT, AB.
Supporting CoAlternative’s advanced pellet project, Mackenzie County Reeve Josh Knelsen said: “This is a leading-edge, first-of-its-kind project in Canada that turns wildfire-damaged wood into clean energy and helps reduce reliance on coal.
“These two facilities represent hundreds of millions of dollars in private investment and the potential for up to 300 direct jobs, with many more across forestry, construction, transportation, and local businesses.
“One site, east of La Crete along the Highway 88 connector, is shovel-ready with services already in place and is expected to move toward construction by mid-2026. A second site, south of High Level along Highway 35, is to be used for shipping finished product by rail as well as a second production facility.
“I also know this announcement comes at a time of uncertainty for some in our region. This project is encouraging news and a step toward diversification and long-term resilience in our forestry economy.”
When fully operational, CoAlternative’s two pellet production facilities will support more than 500 new jobs across their supply chains. They will use only wildfire-damaged dead wood and diseased timber as feedstock for manufacturing advanced biofuel at industrial facilities located on the fringes of Albertan forest.
The company will also operate extensive reforestation programs in cleared areas to repair Canada's boreal carbon sink. Much of its work will engage available workforce, as well as Indigenous communities, in the region.
CoAlternative Energy’s Mackenzie County production facilities will largely manufacture premium black biofuel pellets for energy markets in the Far East.
However, they will also produce bio-based chemical furfural for the North American market as an alternative to petrochemicals.
A third product of nutrient-dense, carbon-based soil substrate will offer an alternative to peat-based substrates in both North American and EU markets.
News of Power Wood’s land deal with Mackenzie County was reported in North American media recently with Biomass Magazine reporting its importance to the company’s green energy project.
Farms Magazine paid particular interest to the land deal. Canadian Manufacturing Magazine highlighted the imminent construction of the Peace River pellet plant near La Crete.
Canada’s Financial Post focused on the land’s purchase value, while Bioenergy Insight reported the deal’s benefits for Mackenzie County.
