Howe Sound Pulp and Paper to Get $36.7 Million Funding From NRC for Energy Upgrades

Sept. 8, 2010 - Howe Sound Pulp and Paper and BC Hydro have reached an agreement under BC Hydro's Integrated Power Offer that will help to reduce the mill's electricity consumption and enable the mill to sell surplus clean electricity to BC Hydro.

BC Hydro's Integrated Power Offer helped the Howe Sound Pulp and Paper identify renewable power generation and energy conservation opportunities that enabled the mill to qualify for $36.7 million in Pulp and Paper Green Transformation Program funding from Natural Resources Canada.

"With these funds and the support we are receiving from BC Hydro, we will be making continuous improvements to our mill's energy management and energy efficiency that will enable us to become a significant renewable clean power generator," said Mac Palmiere, president and CEO of Howe Sound Pulp and Paper.

"The addition of a third product — electricity — transforms our business and enhances our viability for years to come," Palmiere added.

According to Howe Sound, the energy-efficiency upgrades will enable the mill to save approximately 65 gigawatt hours of electricity every year. In addition, a refurbished boiler at the mill will enable it to operate its generators at a higher capacity using 100 per cent biomass fuel, resulting in the generation and sale of 400 gigawatt hours per year of clean electricity. BC Hydro will purchase all of the electricity produced as a result of the boiler upgrade - enough power for about 36,000 homes.

By enabling the efficient use of biomass fuel, the boiler upgrade will also reduce the mill's natural gas consumption by 6.5 million cubic meters annually and significantly reduce the mill's greenhouse gas emissions by more than 12,000 tonnes per year, the company said.

About BC Hydro's Integrated Power Offer

BC Hydro's Integrated Power Offer approach gives customers access to BC Hydro technical expertise through a single point of contact, so they can assemble an integrated portfolio of incentives and long-term contracts that optimize their pulp mills' energy efficiency and renewable energy production at the same time.

BC Hydro initially made the Integrated Power Offer available to its pulp and paper customers because of that sector's immediate opportunity to capture federal Green Transformation Program funding. Over the longer term, BC Hydro intends to explore an integrated offer for other industrial customers and possibly other customer classes.

To learn more about BC Hydro's Integrated Power Offer, go to:
www.bchydro.com/powersmart/industrial/industrial_transmission/integrated_power_offer.html

SOURCE: Howe Sound Pulp and Paper