Canfor Pulp Working On Green Transformation Projects
By 250 News
Tuesday, February 09, 2010 03:48 AM
Prince George, B.C.- Canfor Pulp Limited Partnership is preparing feasibility studies for projects under the Green Transformation fund for submission within the next couple of months.
The Pulp and Paper Green Transformation Program is aimed at helping Canadian pulp and paper companies improve the energy efficiency and environmental performance of their facilities by providing a $0.16 per litre credit for black liquor produced by their mills between January 1, 2009, and December 31, 2009.
Canfor Pulp qualified for $122 million dollars and plans to spend $16 million dollars on capital this year to make the transition to energy production and for an odour control project in Prince George.
It is expected the Federal Green Transformation dollars will be provided on a cost reimbursement basis and the financial benefits of the new projects are expected to start showing on the balance sheet next year.
The project is designed to generate more steam with less hog fuel or natural gas. Canfor is still in the process of negotiating a price with B.C. Hydro for the energy it produces.
During a conference call to discuss the 4th quarter results, CEO Paul Richards says with the market very tight and chip supplies being kept low, Canfor Pulp has had been challenged to meet its current orders, and has had to turn down some orders.
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