Pulp and Paper Canada

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Energy rebates ‘clearly good news’


November 20, 2006
By Pulp & Paper Canada

A new program introduced by Ontario Premier Dalton McGuinty and Natural Resources Minister David Ramsay will allow …

A new program introduced by Ontario Premier Dalton McGuinty and Natural Resources Minister David Ramsay will allow pulp and paper mills in northern Ontario to qualify for energy rebates.

Forestry facilities located in the northern part of the province will now be eligible for rebates intended to help companies slash electricity costs by 15% over a three year period. According to terms of the $140 million plan, the province will provide quarterly rebates for northern pulp and paper mills that use at least 50,000 megawatt hours a year and agree to become more efficient.

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Although certain forestry companies, namely Tembec, have come out to champion the program, the Communications, Energy and Paperworkers union feels the program falls short of what is required, saying the rebates will not even come close to having the needed impact on the industry.

James Lopez, president and CEO of Tembec disagrees. “This program, along with other initiatives aimed at promoting greater energy efficiency, conservation and internal generation, will create a combined result that should make overall power costs for our mills much more competitive. With this overall framework, the disadvantage we have seen for the last few years should be largely offset. This is clearly good news.”


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