The Harmac Pacific pulp mill in Nanaimo, British Columbia, will receive $4.31 million from the Pulp and Paper Green Transformation Program (PPGTP) to improve the mill's energy efficiency and enhance its environmental performance.
"Our Government's investment in energy efficient technology will help Harmac reduce its energy costs while becoming increasingly green and competitive, which is a great result for this community," said Minister Lunn. "We have made great strides in improving the environmental performance of our forest sector - strengthening its competitiveness and helping industry position itself for future global marketplace opportunities."
The planned upgrades will allow the mill to better control the amount of energy that is consumed, process more wood fuel and help displace the use of fossil fuels.
Energy savings will help Harmac reduce its reliance on natural gas by approximately 108,000 gigajoules annually, the amount of energy consumed each year by over 1,000 Canadian households. These fossil fuel savings will reduce greenhouse gas emissions by more than 5,000 metric tonnes a year.
"Forestry plays a key role in ensuring the long-term sustainability of Nanaimo," said Dr. James Lunney, Member of Parliament for Nanaimo-Alberni. "This investment is good news -- for our forestry workers, for the local economy and for the forest industry in British Columbia."
"Harmac is very pleased with the way in which the PPGTP was put in place, and even happier with what will be the end results," said Levi Sampson, President of Harmac Pacific. "This program is not only great for our company, but also for the community of Nanaimo in which we operate. Whenever you can increase the productivity of the mill while drastically improving your environmental standards, it becomes a real win for everyone."
Nanaimo Forest Products is one of 24 pulp and paper companies across Canada that qualified for credits under the $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.
On the first-year anniversary of the PPGTP, Nanaimo Forest Products and other credit recipients are making a real difference in Canada's pulp and paper industry and the communities in which it operates.
Today's announcement complements and builds on the success of the many initiatives in Canada's Economic Action Plan that are helping to sustain and enhance Canada's forestry industry and the families and communities that depend on it. Budget 2010: Leading the Way on Jobs and Growth established the $100-million Investments in Forest Industry Transformation program to promote the development, commercialization and implementation of advanced technologies in the forest sector - helping create a world-class industry able to compete in the clean energy economy of tomorrow.
In addition, the Government of Canada has committed $170 million to assist the development of next-generation forest products and expand global markets for Canadian forest products. This funding includes $40 million to develop pilot-scale demonstrations under the Transformative Technologies Program.