Merritt’s long-vacant pellet plant is being revitalized by a new company.

Diacarbon Energy, a Burnaby-based bioenergy company, has moved into the property and plant on Priest Avenue and is putting about $9 million in changes into the infrastructure in order to begin production of wood pellets and biocoal by this fall.

Construction at the plant will be underway in the next few weeks, Diacarbon president and CEO Jerry Ericsson said, and about 15 people are needed to work during the construction phase.

Once it’s operational, about 25 permanent jobs will be located on-site, he said. Those positions will range from general labourers to equipment operators to maintenance staff.

“We’re looking at about 15 during construction time, which would start now, essentially, and then around 25 to 30. We’re still narrowing down what the exact number will be for operations,” Ericsson said, noting the project is in its early stages.

Work was already underway at the site last week: the sawdust dryer arrived from Germany on Wednesday, and will start being built on June 1.

“It’s all kind of happening right now, so it’s exciting,” Ericsson said.

In the coming weeks, part of the three lots at the site will be paved as well to mitigate dust spread, he said.

The pellet plant, which was built in 2010, was originally funded by the federal government and a local businessman, but the plant sat unoperational after the funding fell through.

Chilliwack-based Jake’s Construction closed the purchase on the property earlier this year, and Diacarbon’s lease at the site took over March 1.

Ericsson said he and his father formed Diacarbon in response to the federal government’s creation of the carbon tax.

He said the company is built on the idea that industry and the environment don’t have to be at odds.

“I believe you can have a healthy industry and environment, and that’s how I’ve lived my life,” Ericsson said.

The team of scientists and engineers spent the next six years developing technology to produce energy from wood through a process called torréfaction, which is French for roasting.

The development of that technology was aided by almost $3 million in grants, he said.

“We thought that it was a great place to start up a business like this.

“We’re looking at actually installing this wood roaster at the Merritt facility,” he said.

Diacarbon uses wood waste from other industries to produce biocoal and wood pellets.

The roaster is the key to processing the company’s biocoal product, which is roasted wood pressed into charcoal-like pieces that can be used as a direct substitute for charcoal burning, Ericsson said.

“It’s really the second generation of wood pellets,” he said, adding the benefits are that it burns cleaner and without smoke.

In its current capacity, the plant is expected to produce between 35,000 and 40,000 tonnes of biocoal a year.

“That’ll displace about 80,000 tonnes of greenhouse gas emissions from a cement facility, which is about 20,000 cars,” Ericsson said.

He said the prospect of putting in the technology the company has been developing since it was founded six years ago is exciting.

Ericsson said the company is looking forward to operating in Merritt.

“This will be a substantial development for the industry in Canada and it’ll be great that we’ll have a first-of-its-kind facility in Merritt,” he said.

“We are excited about being there and we look forward to becoming part of the community. That’s our commitment.”