Pacific BioEnergy in Prince George is closing its doors next year.
According to the company, it has reached an agreement to assign several assets to the Drax Group.
The closure will leave 55 people out of work.
The shutdown date will be determined in the new year.
“Our Company has been battling several challenges for the past few years. Sawmill closures in the region have reduced the volume of available raw materials and increased their cost significantly. Forest fires, landslides, and floods have severely impacted our ability to transport our product by rail to the export terminal in North Vancouver. The impact has been a significant increase in operating costs. Our sales contracts have been sold to Pinnacle to mitigate the impact on our customers,” said John Stirling, CEO.
Pacific BioEnergy has been part of the local community for over 25 years.