The tiskʷat Mill has been a cornerstone of Powell River’s prosperity for more than a century. While it no longer has a future producing newsprint, up until two weeks ago it seemed like the site was on the verge of being reborn as a hydrogen company. Then Paper Excellence refused Renewable Hydrogen Canada’s offer and listed their property with an International Real Estate firm. 

Powell River mayor Dave Formosa said, “I was all over the news talking about Renewable Hydrogen Canada.  So when Juergen Puetter (Chair/CEO of Renewable Hydrogen Canada) told me that he went to refresh his offer and his contact at Paper Excellence said, ‘we can’t accept that, you got to give it to Colliers – I said, ‘I’m shocked.’ And he goes, ‘you’re shocked.’ That was two weeks ago, but hey, it still may happen.” 

Formosa said the tiskʷat Mill was extremely important to the 13,942 people of Powell River and the local economy. 

Prior to COVID and a spyware attack, it employed 420 people and provided the city with 17% to 18% of its revenues.  

He added, “Out of the four Paper Excellent mills on the coast, It’s probably the weakest and the largest.  As far as making a profit, after all costs, including administration, it’s at the bottom of the heap. I think it’s actually been a loss for the company.”

The city has been aware of this for at least the 14 years Formosa has served on city council.  

“We provided not only to Paper Excellence, but to Catalyst before them, a 50% reduction in property taxes – which equated to about a +$3 million plus shift of the tax burden to the residents and commercial,” he explained. “I really hope that ownership of Paper Excellence remembers how cooperative and kind, the city residents and commercial taxpayers were, because the vast majority supported us in what we did.”

The mill’s demise started with a spyware attack, in February 2020. Then COVID hit. There was only one machine and half of the employees working when the tiskʷat Mill closed it’s doors for what was initially a ‘temporary curtailment’ on November 22, 2020. 

Formosa believes the owner’s decision to list the property, rather than pursue Renewable Hydrogen Canada’s offer, was sparked by BC Hydro’s decision to not renew a power agreement they had with the mill. That had enabled the mill to almost break even. They once told Formosa that if that contract was not renewed, they might have to close the mill.

“When they didn’t get that renewal, I think that really upset  the owner and he closed the mill, like he said, he would. I imagine they’re looking for the most amount of money and someone that can handle the liability of the site.”

The City of Powell River has devoted a great deal of time and energy to keeping the mill afloat. 

“You’re always looking at opportunity of bringing in other industry to help the burden of taxes for them and or that that industry could connect to bring down their costs,” said Formosa.  

They obtained a provincial grant to build a new boiler, and helped persuade the Government of BC to remove the 7% tax for on electricity for commercial enterprises. 

“We were able to bring in a boutique marijuana cultivation group that will employ between 30 and 60 jobs fairly rapidly.”

Formosa learned about the negotiations with Renewable Hydrogen Canada five or six months ago.

“I’m hoping  that at the end of the day, Paper Excellence will allow this project to go through if they can come up with the right amount of money for them and the right amount environmental liability protection.  I think the province supports this because they know this is clean energy and I am told that it fits right into the BC’s climate change plans.”

Failing that, the site is still an excellent location for another business. 

“You could make a real nice little industrial park there. There’s no more industrial waterfront on the ocean that has a deep sea port, all that power to offer and all that fresh water to offer. What a beautiful waterfront property,” explained Formosa. “My good Lord,  some large organization could come in there and put something in. If it was a responsible corporation, as far as we feel in these days, climate change issues and our oceans, and it was responsible contributor  to the community, the province, the country, and themselves, then, something large would be nice.”

Top photo credit: Looking at the Powell River mill site from the water – courtesy Paper Excellence

Sign-up for Cortes Currents email-out:

To receive an emailed catalogue of articles on Cortes Currents, send a (blank) email to subscribe to your desired frequency:

• Daily, (articles posted during the last 24 hours) – [email protected]
• Weekly Digest cortescurrents – [email protected]