Fed Plan Good News Says Canfor Pulp Production Manager
By 250 News
Wednesday, June 17, 2009 02:56 PM
Prince George, B.C.- The Production Manager for Prince George Pulp and Intercon Pulp is happy with the plan outlined by the federal Government to help level the playing field with their American counterparts, “We don’t have a lot of details yet, but from what I have seen, this is a good deal for Canfor Pulp and the industry” says Chuck Walls.
American pulp producers are eligible for a 50-cent per gallon tax credit by adding small amounts of diesel to the black liquor, qualifying it as an alternative fuel according to the American legislation. Some U.S. mills are now making more money through the tax credit than they would for pulp production.
Under the new $1 billion dollar “Green Transformation” Canadian program, Canadian mills may be eligible for 16 cents per litre of black liquor produced. The funds will have to be used in the next three years on capital expenditures that make improvements to energy efficiency or environmental performance.
“We have a number of projects on the books that we would like to proceed with” says Walls. Those projects include an odour reduction program and a particulate emission reduction plan that is linked to the energy production project approved by BC Hydro.
If Canfor Pulp qualifies for the .16 cents a litre, that could amount about $250 thousand dollars a day for the Prince George operations. The Federal Government’s offering is for one year.
“I think what is really important, is that the Government listened to what the industry was saying and came forward with a positive program” says Walls. “This is not a subsidy, this is an environmental program, whereas the U.S. scenario is a subsidy thinly veiled as an environmental project.”
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