Canfor Pulp, PCT strike forest carbon offset deal (June 25, 2010)
By Pulp & Paper Canada
By Pulp & Paper Canada
Canfor Pulp Limited Partnership has signed a letter of intent with Pacific Carbon Trust for a multi-year deal …
Canfor Pulp Limited Partnership has signed a letter of intent with Pacific Carbon Trust for a multi-year deal to sell carbon offsets related to emission reductions at the Northwood pulp mill in Prince George, B.C. The emission reduction project will generate up to 80,000 tonnes in CO2e reductions, announced PCT CEO Scott MacDonald.
“Canfor Pulp has made significant investments over the past two decades to reduce its carbon footprint,” said Canfor Pulp president and CEO Joe Nemeth. “Between 1990 and 2010, Canfor Pulp has reduced its carbon emissions by nearly 40%. We are pleased that Pacific Carbon Trust has taken a leadership role in Canada, to provide a vehicle that financially recognizes proactive investments that further reduce carbon emissions.”
Located at the Northwood Pulp Mill in Prince George, the aggregated emission-reduction project has three component sub-projects. One is the installation of a side stream scrubber which allows the mill to achieve higher biomass-fuel-burn rates, supporting a reduction in the burning of natural gas.
Also, equipment improvements to the biomass delivery systems will reduce the need to supplement the fuel supply with natural gas, resulting in reduced greenhouse-gas emissions.
In addition, major upgrades to the recovery boiler will increase mill pulp production, improve combustion efficiency, increase internal electricity generation and reduce steam requirements from the mill’s power boilers.
Collectively, these improvements will also significantly reduce sulphur and particulate emissions.
Under the agreement, Pacific Carbon Trust will purchase all third-party-verified offsets originating from the project from 2010 to 2012, with future purchases dependent on the parameters of any cap and trade systems developed at the regional or national levels.
To qualify greenhouse gas emission reductions as carbon offsets, project developers must demonstrate financial, technological or other obstacles that are partially or fully overcome by revenues from offset sales.
“The growing demand for carbon offsets is a new and exciting opportunity for the B.C. forest sector,” said Forests and Range Minister Pat Bell. “Recognizing the economic and environmental value of this opportunity, Canfor has upgraded its Northwood Pulp Mill with innovative technologies that will help fight climate change and supply the market for forest carbon offsets.”
Pacific Carbon Trust is a Crown corporation established in 2008 to deliver B.C.-based greenhouse gas offsets.