WILLIAMS LAKE — A company operating a wood pellet plant in British Columbia's interior says the plant will close by the end of the year due to a lack of available fiber.
British company Drax, which has faced accusations that it burns old-growth British Columbia timber to generate electricity in the UK, says it is closing the Williams Lake plant due to the closure and downsizing of nearby sawmills and “the loss of bids for key local supplies.”
The company says the reduction in fiber availability means the plant is “no longer commercially viable” and operations will be curtailed until existing supplies are depleted.
Drax, which has operations in British Columbia and Alberta, says it employs 30 people at its Williams Lake facility and is implementing a support plan in light of the closure announcement.
Environmental group Stand.earth has blamed the burning of B.C.'s 250-year-old trees, and Drax said this week that some of its fiber comes from “low-grade roundwood” or logs that would otherwise “likely have been burned in a controlled manner.”
Canada's forestry sector has been hit hard by weak market conditions and economic uncertainty, including U.S. tariffs.
Last month Interfor Corp. announced an increase in planned lumber production cuts across all of its divisions for the fourth quarter, including in British Columbia and Ontario.
The situation prompted Ottawa to announce a new package of domestic sector support, including an additional $500 million in loan guarantees for the softwood lumber industry.
This report by The Canadian Press was first published Nov. 27, 2025.
