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Federal government invests $88 million in mill upgrades


March 15, 2011
By Pulp & Paper Canada

The Government of Canada announced on March 14 a series of investments in the forest products sector totalling $88 million, under the Pulp and Paper Green Transformation Program and Transformative Technologies Pilot Scale Demonstration Program.

The Government of Canada announced on March 14 a series of investments in the forest products sector totalling $88 million, under the Pulp and Paper Green Transformation Program and Transformative Technologies Pilot Scale Demonstration Program.

The AV Group will receive $24 million from the two programs, some of which will be used for a biogas plant at Atholville.

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“This funding allows us to invest in projects right away, which will decrease our use of energy, reduce our emissions and support jobs at both of our facilities,” said Shankar Ray, president and CEO of AV Group. “We are also very happy to be working with the federal government and FPInnovations to establish a state-of-the-art biogas plant at our Atholville facility.”

PPGTP funding for the Nackawic facility will be used to purchase equipment to increase energy efficiency.

Canfor Pulp’s Northwood Pulp mill is installing a process control system, with the assistance of federal and provincial funding. The company will receive $2.5 million under the Transformative Technologies Program.

Other funding for the project includes a $2.1-million contribution from the B.C. Ministry of Forests, Mines and Lands, bringing the total funding to $4.6 million. In addition, Canfor Pulp will invest an additional $4.4 million in cash and in-kind contributions.

“This project will build on Canfor Pulp’s leadership in the northern bleached softwood kraft market through the installation of ‘real-time’ testing systems for our woodchips, pulping process and final pulp products,” said Robert Dufresne, general manager, Northwood Pulp mill. “This will allow Canfor Pulp to optimize the value chain and ensure that the raw materials and finished pulp products are matched to the customer’s end use.”

Cascades’ Norampac-Cabano mill will receive $3 million under the PPGTP. The funding will be used to reduce its greenhouse gas emissions and the particulate matter emissions from its two biomass boilers.

For the East Angus mill, Cascades will receive $3.1 million under the PPGTP. This funding will allow Cascades to build a modern pulp recycling facility, substantially improving the environmental performance of the mill.

“The East Angus mill is one of the oldest in Canada, and the federal government’s support provides real help for upgrading the equipment, but most of all for maintaining quality jobs locally,” said Mario Plourde, chief operating officer of Cascades.

Nanaimo Forest Products’ Harmac Pacific Mill will receive $9 million under the PPGTP for three capital improvement projects.

In Témiscaming, Que., Tembec will receive $975,000 from the PPGTP to improve the environmental performance of the mill.

Smurfit-Stone Corporation’s mill in La Tuque, Quebec, will receive $24 million under the PPGTP.

Tolko Industries Ltd. will receive $1.3 million under the Transformative Technologies Pilot Scale Demonstration Program and a $300,000 contribution from the Government of Saskatchewan. The company has also invested approximately $1.6 million in the project through cash and in-kind contributions.


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