CANADA (News release) -- Newfoundland and Labrador Hydro has agreed to a short-term power purchase agreement with Corner Brook Pulp and Paper Limited to buy clean hydroelectricity. This agreement provides the Provincial Government an opportunity to review and consider Kruger's proposed approach to diversification at Corner Brook Pulp and Paper.

What's in the agreement?

• Newfoundland and Labrador Hydro will buy up to 140,000 megawatt hours of power at $187 per megawatt hour.
• It starts after the current agreement ends (estimated in January 2026) and runs until June 30, 2026.
• The current agreement, in place since 2024, costs $275 per megawatt hour.
• NL Hydro can use Corner Brook Pulp and Paper's power supply when needed.
• This will not increase electricity rates for customers.

Corner Brook Pulp and Paper is a long-standing employer in rural Newfoundland and Labrador and a key part of the forestry industry. The Provincial Government will work to ensure rural Newfoundland and Labrador economies can grow and thrive, and that the people of the province are the first to benefit from its natural resources.

Quotes
"This agreement ensures stability while we carefully review the Corner Brook Pulp and Paper Diversification Project proposal. Our priority is to create opportunities that strengthen rural economies and ensure the people of this province are the first to benefit from projects that drive growth and sustainability"
Honourable Craig Pardy
Minister of Finance

"Corner Brook Pulp and Paper is a long-standing part of our province's forest sector, ensuring jobs for many in the industry. This agreement allows the time necessary to work with Kruger on their diversification project to make sure it is in the best interest of all those who make a living working in forestry."
Honorable Pleaman Forsey
Minister of Forestry, Agriculture and Lands

"This temporary agreement will provide additional capacity for NL Hydro at a lower cost as compared to what was signed by the previous administration as our government ensures due diligence in reviewing the Kruger proposal."
Honourable Lloyd Parrott
Minister of Energy and Mines