Tembec to Upgrade Energy, Environmental Operations at Matane Mill
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Tembec, Temiscaming, Que., Canada, this week announced that it will invest $25.7 million at its high-yield pulp mill in Matane, Que. The investment will result in "energy, environmental, and economic benefits." Funding will come mainly from the federal government and the Province of Quebec, with $18.9 million related to black liquor credits earned by the company under the Federal Green Transformation Program and $6.3 million from the Agence de l'efficacité énergétique's Heavy Oil Consumption Reduction Program.
The project has two main components. The first is a new anaerobic treatment facility. Estimated to cost $23.9 million, this system treats effluent and collects the methane gas produced in the treatment process, allowing it to be used as a biofuel for drying pulp produced at the site.
With an estimated cost of $1.8 million, the second component involves the installation of an electric boiler that will replace the current heavy oil fueled boiler. The combined effect of the two components will result in the elimination of all heavy oils and the vast majority of the light oils currently used as a fuel source for the generation of the mill's various process steam and drying requirements. They will also result in a significant improvement in the mill's cost structure, with EBITDA projected to increase by $6 million on an annual basis, beginning when the project is completed in mid-2012.
"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 VP and president, Specialty Cellulose and Chemical Group. "The environmental benefits will also provide an appealing attribute in the marketplace."
James Lopez, president and CEO of Tembec, noted that the investments "will improve the position of the Matane mill in environmental, energy, and economic terms. This initiative is consistent with the company's stated objectives of investing in its core businesses, pursuing opportunities related to green energy projects, and moving all of its facilities into the first or second quartile of their respective cost curves."
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