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DAILY NEWS Jan 29, 2013 1:57 PM - 0 comments

Fortress co-gen project at Thurso delayed

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2013-01-29

The biomass cogeneration project at Fortress Specialty Cellulose in Thurso, Que., is nearing completion, but will be delayed, the company has announced. Fortress now expects to begin delivering power to Hydro Quebec late in the first quarter or early in the second quarter of 2013, and anticipates additional costs in the 10-20% range for the overall cogeneration project.

Construction is more than 90% complete, but commissioning and start-up activities have incurred delays as a result of various factors, including unforeseen piping related delays, reduced manpower availability and minor scope of work adjustments, the company reports.

In November 2012, when Fortress Paper released its third quarter results, management expected the co-gen project to be operational in January 2013, and to cost approximately $100 million.

The Fortress Specialty Cellulose Mill continues to ramp-up its production of dissolving pulp. Despite promising operating results in November and December 2012, the mill is not yet operating at full capacity.

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