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Canadian green energy plan funds Domtar's Kamloops project

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Canadian green energy plan funds Domtar's Kamloops project

April 09, 2010 - 02:39
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KAMLOOPS, BC, April 8, 2010 (Market Wire) -A $57.6-million investment by the Government of Canada will enable Domtar Corporation, North America's largest integrated manufacturer and marketer of uncoated freesheet paper, to improve its environmental performance and contribute to a more sustainable pulp and paper industry in Canada.

The Honourable Stockwell Day, President of the Treasury Board of Canada and Minister for the Asia-Pacific Gateway, along with Cathy McLeod, Member of Parliament for Kamloops-Thompson-Cariboo, today announced that the Domtar Kamloops Mill will receive funding under the Pulp and Paper Green Transformation Program (PPGTP) for two capital improvement projects.

The projects will allow the mill to increase its capacity to produce renewable energy and reduce particulate emissions by acquiring new equipment and modifying existing equipment.

"These projects show that smart investments enable pulp mills to increase their capacity to improve their environmental performance and clean energy production, while providing important forest products for consumers," said Minister Day. "The Green Transformation Program is helping Canada's pulp and paper sector become more environmentally sustainable by supporting innovation and investments in green technologies."

Domtar 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.

Significant environmental benefits are expected to result from the equipment upgrades, including improvements in local air quality and the capacity to redirect more of the steam generated by the mill for the production of clean, renewable energy. The capital improvements will also increase the reliability and efficiency of equipment, decrease the mill's emissions and allow the mill to better meet its energy needs. All of these upgrades will allow the mill to take advantage of future market opportunities and maintain jobs for its 430 employees.

"Today's announcement underscores our government's commitment to the forest sector and its workers in British Columbia," said Ms. McLeod. "For the citizens of Kamloops and the surrounding region, this investment in local innovation will translate into a more robust forest industry and help maintain good jobs."

Domtar has a history of environmental stewardship. In 2002, Domtar became the first major North American paper company to achieve Forest Stewardship Council (FSC) certification. In addition, Domtar also certifies its forest through Canadian Standards Association (CSA) and Sustainable Forest Initiative (SFI) certification systems. This leadership continues with today's PPGTP funding announcement to support upgrades to the Kamloops mill's no.2 recovery boiler and modifications to the mill as part of an air emissions improvement project. Once complete, the recovery boiler will be the first of its kind in the world to be retrofitted with a dissolving tank vent gas heat recovery system.

"We are excited to move forward with the improvement of the environmental performance and energy efficiency of our Kamloops mill, thanks to the credits received under the Pulp and Paper Green Transformation Program," said John D. Williams, President and Chief Executive Officer of Domtar Corporation. "These capital improvements will help the Kamloops mill move towards a greener, more sustainable future."

This investment complements initiatives that are being delivered under Canada's Economic Action Plan to sustain and improve the forest industry in Canada. Budget 2010 is providing $100 million over four years to support 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 developed under the Transformative Technologies Program.