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AV Cell uses $12 million in funding from Canada gov’t for effluent upgrade in New Brunswick in final instalment of $1 billion Pulp and Paper Green Transformation Program

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AV Cell uses $12 million in funding from Canada gov’t for effluent upgrade in New Brunswick in final instalment of $1 billion Pulp and Paper Green Transformation Program

November 25, 2013 - 11:14

EDMUNDSTON, NB, Nov. 25, 2013 (Marketwired) -The Honourable Bernard Valcourt, Minister of Aboriginal Affairs and Northern Development, on behalf of the Honourable Joe Oliver, Canada's Minister of Natural Resources, today announced $12 million in funding for a project that is helping sustain jobs in rural communities in New Brunswick and advancing the transformation of Canada's forest sector. This investment by the Government of Canada is the final instalment of support from the $1-billion Pulp and Paper Green Transformation Program (PPGTP).

"Our Government recognizes that the forest sector remains an important economic driver for Madawaska-Restigouche, and we are committed to the ongoing transformation of our forest industry," said Minister Valcourt. "That is why our Government is supporting the forest sector by investing in world-class forest research, technological innovation and improving the environmental performance of our local businesses."

The funding announced today went to AV Cell Inc. in Atholville, New Brunswick, for capital upgrades to treat two mill effluent streams using an anaerobic process. This form of effluent treatment will allow the mill to produce more renewable energy through the combustion of biogas, thereby offsetting consumption of fossil fuels and reducing emissions.

In addition to the direct environmental benefits of PPGTP projects, the program has helped generate new investments that are making Canadian pulp and paper facilities more sustainable and more competitive. In total, the program has provided funding for 98 projects in 38 communities and supported more than 14,000 jobs. Together, these projects are producing enough renewable energy to meet the equivalent of the annual power needs of all of the houses in Calgary, Alberta. In some cases, mills are expanding their revenue streams by selling their surplus energy to the grid. The renewable electricity generated by PPGTP-funded projects is expected to create $149 million annually in revenues for Canadian pulp and paper mills.

Collectively, these projects are expected to directly reduce greenhouse gas emissions of the Canadian pulp and paper sector by more than 10 percent, and communities are benefiting from improved air emissions and reduced noise from mills.

The focus of this next phase of transformation is on extracting more value from forest resources and taking advantage of opportunities in Canada's bio-economy. The Forest Innovation Program announced in Budget 2012 and the $100-million Investments in Forest Industry Transformation program are helping 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.

The AV Cell Inc. project is one of 16 PPGTP-funded projects announced recently by the Government of Canada, representing a total investment of $109.2 million.