Catalyst Green-Energy Project at Powell River to Displace 100,000 Metric Tons of GHG

Catalyst Paper, Richmond, B.C., Canada, this week announced $13.3 million in federal funding approval for a new green-energy project at its Powell River mill that will produce low-carbon electricity and be one of the cleanest waste wood co-generation projects anywhere in Canada. The project is funded entirely by the Pulp and Paper Green Transformation Program (PPGTP) credits, earned through production of black liquor at the company's Crofton pulp operation in 2009. The electricity will be certified under the federal EcoLogo program.

The project will involve new waste-wood handling equipment, a sand recycling system and other upgrades to an existing power boiler (PB19), and installation of a steam condenser on the generator (G12). Work is underway and expected to be completed within approximately 12 months.

"One of the great strengths at the Powell River operation is our clean-burning power boiler. Emissions and air-quality monitoring demonstrate that," said Bob Lindstrom, VP, supply chain, energy and information technology. "Factor in our marine access to waste-wood supplies, and our Powell River mill becomes one of the most logical and low-impact places in Canada to generate green energy from biomass."

The project is supported by the Sliammon First Nation, which has signed a memorandum-of-understanding (MOU) with Catalyst in connection with it. The MOU includes a provision for a Sliammon-Catalyst Development Fund, commits Catalyst to informing the Sliammon regarding fiber-supply opportunities, and envisions longer-term collaboration relating to skills development.

Waste wood, mostly tree bark, is burned in PB19 to create steam for both papermaking and electricity generation. Manufacturing-related steam requirements were reduced when kraft pulp production ended at Powell River in 2001. The new steam condenser will allow PB19 to once again be operated at capacity, and G12 electricity generation to double from 14 - 18 MW to a range of 32 - 36 MW.

Waste wood or biomass is classified as a carbon-neutral fuel under international carbon accounting protocols and widely accepted standards, and the project will therefore help achieve British Columbia's carbon-reduction and energy self-sufficiency goals. The same amount of fossil fuel-generated electricity would typically create nearly 100,000 metric tons of greenhouse gas emissions each year, equivalent to the operation of 25,000 cars.

"Green-energy generation has enabled us to reduce the carbon footprint of our Canadian mills by more than 80% since 1990," said Lindstrom. "We are keen to leverage that expertise more broadly. This project creates a supplemental energy product line, and that could translate into significant competitive advantage in an industry that's under pretty severe pressure."

The project's impact on the mill's environmental performance has been modeled and assessed, as required by the Canadian Environmental Assessment Act. Electricity from this project will displace natural gas generated electricity for a net annual reduction of 96,500 metric tons of carbon emissions. Mill air emissions are expected to remain within applicable permit levels and the mill's carbon footprint will remain at an industry-leading level of approximately 88 kg of CO2e/adt of production.

Installation of a recycling system will improve the use of sand that is fed into the boiler bed to ensure combustion efficiency. Rather than being trucked away for screening, as is now done, sand will be screened and recycled on-site, reducing the total volume of sand required.

The PPGTP is a federal program designed to support innovative projects with environmental and energy benefits in the Canadian paper industry. Catalyst qualified for $18 million in PPGTP credits.

TAPPI
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