Peace River Pulp Division receives $40.57 million

The Government of Canada’s investment of $40.57 million in Daishowa-Marubeni International Ltd. (DMI) is improving the company’s environmental performance and helping drive the evolution of Canada’s forest sector, the Honourable Rob Merrifield, Minister of State (Transport), announced today. The Peace River Pulp Division will receive funding under the Pulp and Paper Green Transformation Program (PPGTP) for its Green Power Enhancement Project.

“Investments in green technologies and renewable energy production are transforming the future of Canada’s forest industry,” said Minister Merrifield. “Our Government is supporting investments that improve the environmental performance of the pulp and paper sector, while it continues to provide important forest products for consumers.”

“This is excellent news for our community,” added Chris Warkentin, Member of Parliament for Peace River. “Projects like this one clearly demonstrate our Government’s ongoing commitment to helping transform Canada’s forest sector and support workers in forest-dependent communities.”

This project will increase the efficiency of the mill’s production of green electrical power and decrease its environmental footprint. The primary benefit of this project is the production of an additional 126,000 megawatt-hours (MWh)/year of electricity generated from renewable sources that will be sold to the Alberta power grid — an anticipated 630 percent increase over current export levels and enough energy to power 10,588 homes annually.

Funding will also be used for upgrades that will improve the mill’s energy efficiency.

”With the Government of Canada’s financial support, DMI will invest upwards of $59 million in the PRPD facility as part of the Green Transformation Program,” said company spokesperson Bill Downing. “It is only through the very well thought out and designed Pulp and Paper Green Transformation Program and the support of the Government of Canada that we can make such a substantial project come to fruition. This investment will not only improve our environmental performance but also make us more competitive in a very capital intensive and competitive world pulp market.”

DMI is one of 24 pulp and paper companies across Canada that qualified for credits under the $1-billion program, based on their 2009 production levels of black liquor, a liquid by-product of the pulping process used to generate heat and power.

The Pulp and Paper Green Transformation Program complements initiatives that are being delivered under Canada’s Economic Action Plan to sustain and improve the forest industry in Canada. Budget 2010: Leading the Way on Jobs and Growth is delivering $100 million over four years to support the development, commercialization and implementation of advanced technologies in the forest sector — helping create a world-class industry able to compete in the clean energy economy of tomorrow.

In addition, the Government of Canada has committed $170 million to assist the development of next-generation forest products and expand global markets for Canadian forest products. This funding includes $40 million to develop pilot-scale demonstrations under the Transformative Technologies Program.