Canada to fund C$995,000 for energy project at Domtar’s Espanola, ON, mill

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Canada to fund C$995,000 for energy project at Domtar’s Espanola, ON, mill

June 07, 2010 - 05:19
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SAN FRANCISCO, June 7, 2010 (RISI) -Canada will provide C$995,000 to Domtar for an environmental project at the company's Espanola, ON, pulp and paper mill under the government's Pulp and Paper Green Transformation Program (PPGTP).

The mill will install a refurbished wood waste grinder that will allow it to process bark more effectively for the production of renewable energy.

"This project is part of a transformation that is taking place in Canada's forest industry," said Minister of Natural Resources Christian Paradis. "The Green Transformation Program is helping Canada's pulp and paper sector become more environmentally sustainable by supporting investments in green technologies. This investment is also increasing the mill's capacity to improve its environmental performance and produce clean energy, while providing important forest products for consumers."

The refurbished equipment will enable the Espanola mill to grind more bark with greater efficiency and produce a finer bark product that burns better, eliminating the need for secondary grinding of bark, which is currently done by a diesel-powered portable grinder. In turn, the mill will eliminate the consumption of diesel fuel associated with the portable grinder and displace consumption of natural gas by generating more renewable energy to power the facility.

These operational efficiencies will help the mill reduce its greenhouse gas emissions and meet market demand for sustainably manufactured pulp and paper products, the government said in a press release. Espanola produces market pulp and uncoated freesheet paper.

Domtar is one of 24 pulp and paper companies across Canada that qualified for credits under the C$1-billion program, based on their 2009 production levels of black liquor, a liquid by-product of the pulping process used to generate heat and power.

Domtar has also gained PPGTP funding of C$58 million for a project at its Kamloops, BC, mill and C$23 million for its Dryden, ON, mill. Other PPGTP funding includes C$22 million for J.D. Irving at its Utopia, NB, mill; C$15 million for West Fraser's Hinton, AB, mill, and C$810,000 for Tolko Industries' mill in The Pas, MB.