Newfoundland and Labrador Hydro has signed a temporary power purchase agreement with Corner Brook Pulp and Paper Limited, locking in cleaner hydroelectricity at reduced rates while the province reviews Kruger’s diversification proposal for the mill.
The deal, announced December 22, kicks in after the current contract expires next month and runs through June 30, 2026. NL Hydro will buy up to 140,000 megawatt-hours at $187 per MWh down sharply from the $275/MWh rate of the existing 2024 agreement while retaining flexibility to tap the mill’s supply for grid reliability.
Provincial officials frame the arrangement as a bridge measure that controls costs without raising customer rates, buying time to scrutinize Kruger’s broader project for the key rural employer. “This ensures stability as we review the diversification proposal,” said Finance Minister Craig Pardy, tying the move to rural economic support.
Forestry Minister Pleaman Forsey and Energy Minister Lloyd Parrott also backed the interim pact, praising the mill’s forest-sector role and the added capacity at lower cost during due diligence. Corner Brook Pulp and Paper remains a cornerstone of the province’s industrial base, with government committed to sustainable growth in rural communities.
Located in Newfoundland and Labrador, Corner Brook Pulp and Paper is a subsidiary of Kruger Inc. and one of Canada’s longest-operating newsprint producers. Established in 1925, the mill has been a cornerstone of the region’s economy for a century, employing about 400 people. It operates an integrated system that includes the Deer Lake Power hydroelectric facility, which supplies renewable energy to the mill.
Source: Government of Newfoundland
