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Canfor Pulp Waiting for Word on Hydro Project

By 250 News

Wednesday, October 29, 2008 04:17 AM

Prince George,  B.C.- Canfor Pulp Limited Partnership could know within two weeks if it will be selling power to the B.C. Hydro grid.
 
President and CEO Paul Richards says the bio mass project is in the second phase, however, there is a cost issue. “The location of hog fuel is having an impact on the production cost. If the fuel is on site, or close by, the project is viable, however,   it is too expensive to gather the fuel.”
 
Richards says negotiations continue with B.C. Hydro and a decision could be delivered by mid November if not sooner.
 
Meantime, while markets for pulp are soft, and  the Partnership says it has an oversupply, the Partnership is looking to spot sales of power to help offset costs in the fourth quarter. 
 
As Opinion250 reported yesterday, the Partnership has also announced there will be production curtailments at all three pulp mills in Prince George to take at least another 30,000 tonnes of pulp and 10,000 tonnes of kraft paper off the market to meet the reduced demand.

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Comments

While you might think this is a good news story, it isn't. These IPPs ( Independent Power Producers ) are negotiating based upon their cost and a very very large profit instead of what the market should pay for their product. Kind of sounds like the oil companies and we all know how well they are ripping us off.
So what you are saying lunaguy is these producers will only do this if there is a profit? Hmmm...

You would think the IPP could get a subsidy from the NDP or something to make more jobs.
I'm with lunarguy on this one!
While there is no doubt that we do or will need the hydro,power for profit scares the hell out of me.
The consumer is going get hurt if there are no controls and guidelines in place and I would not trust the B.C.government to ensure that.
They LIKE the concept too much, and there has to be reason for that!
Yama the IPP's are getting subsidy's from our present government, that pale in comparison to any thing the NDP ever offered.
I have a problem with this in that BC Hydro gave Canfor $55 million towards the construction of this co-gen as a power-smart project which disqualifies them from selling the power.
Yama IPP power is very expensive, thats the fiberals helping each other and buds.
A recent announcement in Dawson Creek re the Bear Mountain Wind energy project. Foundations for 30+ wind turbines are in place and the target date to have the turbines up and running is for November 09.

Interesting that the power produced will have no impact on the price of power in the city of Dawson Creek or the rest of BC. It will not have any effect on the amount of gas used to heat homes. It will not create any incentive for consumers to switch to electric heat from gas. It will all go to the Hydro grid to be sold to California and will have no effect on reduction of carbon emissions in Canada.

Kind of flies in the face of the government's push to reduce GHG's.
Right on rvuser!
Wow rvuser! don't tell me those yanks are stealing our wind now...jeez
CORPORATE GREED runs this country and don't you EVER forget it.
"CORPORATE GREED .." Wonder what normal greed is called?
Plateau should have one built out there and they have the available land and hog that goes to the burner to make it happen. Ditto for Huston.
One of the problems with co-gen from hog fuel and wood chips is that as these plants become more numerous they'll increasingly cease to be the other 'leg' the sawmills and pulp mills installing them hope to stand on in a depressed lumber or pulp market.

If you go back aways in history, before the formation of BC Hydro, many areas in the Province were serviced with electricty provided by the old BC Power Commission.

Which came about originally to take-over many small private power providers, not because of the 'ideology' that public power was best, but because those private operators wanted to exit the electricity business and there were no other buyers.

In more than a few cases their existing systems badly needed upgrading and expansion, but with electricity rates regulated by a Public Utilities Commission they could not justify the needed investment from the expected returns.

We're going to have similar problems with co-gen. As long as only a few are doing it, it'll provide the returns needed to amortize the costs and provide an additional profit. When every large mill gets into the act, it won't.

It's also one of the reasons that 'run-of-the-river' private power generators are given sweetheart deals by the government. They couldn't get financing otherwise.

And before anyone climbs all over me in the mistaken belief that I'm in favour of this, or am advocating 'private' instead of 'public' power, which I'm not ~ I really don't care whether it's 'private' or 'public' so long as it's always available as needed and it doesn't break me to use it ~ let me say that we are NOT looking in the right place for any solution to the coming problem.
rvuser at night Hydro buys power from the states and Alberta at a very cheap rate as its inefficient to change load on their thermal plants where they get most of their power. They would rather almost give away power than change output. Hydro stores that power in the lakes and resells it at a higher rate during the day when consumption increases.
Hydro also buys and sells power between utilities in the states using our generation for guarantee of delivery. Hydro makes good money on these dealings. Do you want them to stop, then watch your bill climb.

Wind power, sounds good but very expensive. Most wind farms around the world over the course of a year only generate 35% of their nameplate rating. The nameplate rating is what one hears in their hype. Also when the wind dies down you need a backup, right, so you still need the standard sources of power. All I am trying to say is the world needs more and more power as it expands and there is no easy answer
What a great mix... of the best of intentions for all..., while turning out to be the perfect means to make a licence to print money for one.