Tembec investing $25.7M in Matane pulp mill
Tembec is investing $25.7 million in a high-yield pulp mill located in Matane, Que. thanks to funding from the federal and provincial governments.
Tembec pulp mill will get a new, aerobic treatment facility and electric boiler.
TEMISCAMING, Que.: Tembec is investing $25.7 million in a high-yield pulp mill located in Matane, Que. thanks to funding from the federal and provincial governments.
The diversified forest products company, with corporate offices based in Temiscaming, Que., is applying black liquor credits for $18.9 million in funding under the Federal Green Transformation Program and is getting an additional $6.3 million from the Agence de l’efficacité énergétique’s Heavy Oil Consumption Reduction Program.
The project mill has two main components. One is a new anaerobic treatment facility that will cost an estimated $23.9 million will treat effluent and collect methane gas for use as a bio-fuel for drying the pulp produced at the site.
The second component involves the installation of an electric boiler at an estimated cost of $1.8 million that will replace the current heavy oil-fuelled boiler.
“This investment will result in a significant reduction in costs for Matane and will allow the mill to be competitive in global markets for years to come,” said Yvon Pelletier, executive vice-president and president of Tembec’s Specialty Cellulose and Chemical Group.
Tembec said both components eliminate all the heavy oils and most of the light oils currently used as a fuel source for the mill’s process steam and drying requirements. When the project is completed in mid-2012, the company anticipates a $6 million increase in EBITDA.
The Pulp and Paper Green Transformation Program is a $1 billion fund for Canadian pulp and paper companies that in 2009 produced black liquor, a liquid by-product of the pulping process used to generate renewable energy. Money from the fund can be used to finance green projects and companies have until 2012 to apply their credits. Twenty-four mills qualified for the program.
Quebec’s Agence de l’efficacité énergétique’s Heavy Oil Consumption Reduction Program provides financial assistance for analyses and energy efficient measures relating to heavy fuel oil, or a switch to cleaner energy such as natural gas, forest biomass and electricity.