Brooklyn Power Sale Closes, Protecting Jobs, Forestry Link

The sale of Brooklyn Power Corp. in the Region of Queens Municipality will ensure an important player in Nova Scotia's forestry industry keeps operating and that jobs are protected.

The province announced today, July 25, the sale between ReNova Scotia Bioenergy Inc. and Emera Energy Inc. is complete. This plan was announced in December following the province's decision to purchase Bowater Mersey Paper Company Ltd. from Resolute Forest Products Inc. and change the name to ReNova Scotia Bioenergy Inc.

"We have followed through on the premier's commitment to keep Brooklyn Power open, knowing this was good for the region, the employees, and Nova Scotia’s forestry industry," said Graham Steele, Economic and Rural Development and Tourism minister. "In addition, the pension plan for the former Bowater workers is now more secure because of this sale."

Emera Energy Inc., a subsidiary of Emera Inc., has paid $25 million for Brooklyn Power. ReNova hired Deloitte to provide a fairness opinion on the purchase price, and Deloitte concluded that the purchase price of $25 million was fair from a financial point of view.

About 30 people now work at Brooklyn Power.

Region of Queens Municipality mayor, Christopher Clarke, welcomed the news of the sale closing.

"The economy of our region was hit hard by the closure of the Bowater mill, and so I'm very happy Emera Energy Inc. will continue to operate Brooklyn Power. The facility keeps local people working and maintains an important player in the forestry sector, which is in transition," said Mr. Clarke.

"People in our community will be pleased to hear this news. Emera and its subsidiaries are well known to us through the Mersey River System and they are a major contributor to Queens Place Emera Centre, our new recreation and fitness facility which plays a major role in Queens."

Representatives from the forestry industry support the continued operation of the facility.

"Brooklyn Power plays an important role in the forest industry in western Nova Scotia and beyond - a role we're pleased to see continue," said Jeff Bishop, executive director of Forest Products Association of Nova Scotia. "Brooklyn is a vital partner to our sawmill sector, will help keep jobs and families in that region, and a will be a key renewable energy producer in the province. We're glad to have Emera Energy Inc. join our 'forest family' here in Nova Scotia."

The sale also involves a transfer of all company shares and debt, easements for access to some ReNova-owned lands and property, including the pier, wharf and waterline, a commitment to purchase steam for the province's bioresource demonstration centre and a fibre supply assurance agreement.