New Brunswick refuses to renew shell-drying facility's approval to operate

A plant located in Richibucto, N.B., that takes seafood waste and turns it into products such as fertilizer has had its application for a renewal of their approval to operate refused.

Coastal Shell Products’ (CSP) most recent approval to operate from the province expired on Aug. 31.

According to the Department of Environment and Local Government (DELG), the approval to operate required CSP to install odour control equipment by July 2024.

In a statement to CTV News Wednesday, DELG spokesperson Clarissa Anderson said they have not received any evidence the company has completed the necessary upgrades.

"Consequently, following a review of the company’s recent application for a renewal of their Approval to Operate, the department has refused the renewal in light of having failed to comply with their existing Approval to Operate," said Anderson.

People living near the plant have complained about foul odours and noise for years.

The Kent Clean Air Action Committee (KCAAC) formed in June 2022 in an attempt to either stop the CSP operation in Richibucto or have it relocated away from residential areas.

KCAAC spokesperson Maisie McNaughton said she's not sure what the province's decision means for the company, but she's calling it a step in the right direction.

"It feels like we can finally take a really deep breath of clean, fresh air. I feel like in a way we've gained our freedom back. But again, I don't know that this is necessarily the end of the road, but it does feel like we're getting there. It feels like we have made some really serious steps in the right direction," she said.

CSP suspended all operations at the Richibucto facility on June 16 and laid off roughly 20 staff.

The Coastal Shell Products facility is pictured. (Source: Derek Haggett/CTV News Atlantic)

Company manager Jamie Goguen told CTV News in June they’ve never denied the CSP plant generates odours, but said they've tried to work with both the provincial and federal governments to come up with a mitigation plan over concerns about the smell.

“We’ve invested hundreds of thousands, have operated at a loss of over $1.2 million and continued to employ over 25 staff to show our commitment to resolving public concerns and our commitment to New Brunswick’s shellfish industry that relies on Coastal Shell for waste disposal,” said Goguen in news release sent on June 15.

McNaughton and other members of the committee have been very vocal in their complaints over the smell in their community, making numerous statements and doing interviews with the media, including CTV News.

McNaughton tried to explain why she and others in the KCAAC have been so passionate about trying to stop CSP.

"I am a true believer that if you think something is wrong, you can make it right if you believe strongly in it," she said. "This just hasn't been a me effort, it's been a we effort. It's been the entire community. I mean, we've suffered for eight years together, but we stayed strong. We supported each other."

The gate leading to the Coastal Shell Products facility is pictured on May 23, 2023. (Derek Haggett/CTV)

In a statement sent to CTV News on Wednesday, Goguen said CSP remains in operation and under the control and direction of existing management subject to a trustee (Powell Associates Ltd.) which is monitoring for material adverse changes.

Goguen said despite rumours, the company has not filed for bankruptcy, but instead is in the restructuring process under the Bankruptcy and Insolvency Act.

"Coastal Shell will continue to examine all options for its future and hopes to make a next steps decision before the end of the year," said Goguen.

Operations in Richibucto were suspended in June because Goguen said the company didn't want to keep losing money under "restrictive measures" laid out by the province.

CSP was only permitted to operate from 8 p.m. to 8 a.m. daily.

"The limited hours of operation imposed by the province meant we were unable to sustain the business at that time," said Goguen. "Sadly, we were forced to lay off our workforce of over 20 dedicated employees."

Goguen went on to say the company doesn't intend to resume drying operations without DELG's full support through an approval to operate that would allow for shell drying without what Goguen called restrictive conditions.

"Coastal Shell continues to look at all of its options including what mitigation measures could be implemented to be able to resume full operations and to address public complaints around odour," he said. "That work is continuing."

During this period of inactivity at the plant, Goguen said shells from processing facilities around New Brunswick are ending up in approved landfills which has an adverse impact on the environment.

For more New Brunswick news, visit our dedicated provincial page.