New Brunswick pulp mills are waiting for Ottawa's pockets to open

Back in June Ottawa announced a Canadian green funding program for pulp and paper producers to off-set the advantage U.S. mills were experiencing from the U.S. black liquor alternative fuel grant.

The federal fund will provide companies with a credit of up to $0.16 cents per litre of black liquor, up to a maximum program total of $1 billion.

Unlike the U.S. subsidy, Canadian companies are required to invest in capital expenditures that make improvements to energy efficiency or environmental performance.

In New Brunswick, the AV Group, Fraser Papers Inc., and Irving Pulp and Paper Limited are all waiting for their share of the $1 billion.

Fraser Papers has said they are eligible for up to $30 million from the program and they plan to invest the funding into their Edmundston facility - specifically in their wood handling process, pulp bleaching and co-generation facility. Jean-Pierre Benoit, the general manager of the East Papers division, said that the planning projects will improve the mill's productivity, efficiency, and environmental-friendliness.

The AV Group expects to receive $50 million from the fund. The company plans to invest $75 million in improvements at its AV Nackawic and AV Cell dissolving pulp mills over the next three years.

Irving Pulp and Paper wasn't willing to speculate on how much funding they will receive, but did say they are planning to use their share of the funding to tackle their ready-to-go projects that will help their company achieve double-digit reductions in fossil fuel consumption and greenhouse gas emissions.

Source:

Securing forestry's future - Funding: Canada's green transformation program will help pulp mills modernize and be more energy-efficient (New Brunswick Business Journal)