AV Nackawic to receive C$2.37M from federal government's Green Transformation Program for two capital improvement projects that will support clean energy production and environmental improvements at its Nackawic, New Brunswick, pulp mill

Mathew Kearney

NACKAWIC, New Brunswick , July 28, 2010 (press release) – The Government of Canada is investing in two capital improvement projects that will support clean energy production and environmental improvements at the AV Nackawic pulp mill in Nackawic, New Brunswick, Mike Allen, Member of Parliament for Tobique-Mactaquaq, announced today. The investment of $2.37 million for AV Nackawic Incorporated is being delivered through the Pulp and Paper Green Transformation Program (PPGTP) and will both improve the pulp mill's environmental performance and support the evolution of Canada's forest sector.

"Projects like these are an example of how our Government's targeted investments are helping transform Canada's forest sector," said Mr. Allen. "By supporting clean energy production and improved environmental performance, we are laying the groundwork for a more prosperous future for Canada's pulp and paper sector and its workers."

AV Nackawic Inc. 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.

This funding will support upgrades that will reduce the mill's water and energy consumption by recycling filtrate within the bleach plant process. As a result, the mill will reduce the amount of chemicals used in the pulping process and decrease the amount of water consumed.

The second project consists of the installation of equipment that will grind wood pieces for more efficient combustion. The ability to process more wood, along with upgrades to the power boiler's combustion system, will increase the mill's annual production of renewable energy by 12,039 gigajoules per year. By generating more renewable energy, the mill will displace a portion of the fossil fuel it currently uses to generate steam and lower its greenhouse gas emissions by 6,254 tonnes per year, as well as reduce its consumption of fresh water.

"Energy consumption and cost have been key focus areas for AV Nackawic for a number of years," said Mr. Shankar Ray, President and CEO of AV Nackawic Inc. "With smart investment programs such as the Pulp and Paper Green Transformation we are able to finance projects that will decrease our production cost and our environmental footprint."

The Pulp and Paper Green Transformation Program complements initiatives that are being delivered under Canada's Economic Action Plan to sustain and transform the forest industry in Canada. Budget 2010: Leading the Way on Jobs and Growth is delivering a further $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.

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