Pulp & Paper Canada January/February 2011

January/February 2011

www.pulpandpapercanada.com

FEDERAL FUNDING

FIRES UP ENERGY PROJECTS “Green” tech gives Kruger marketing edge Preview: Leadership Summit JOURNAL OF RECORD, PULP AND PAPER TECHNICAL ASSOCIATION OF CANADA

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Š 2010 Kadant Inc. All rights reserved.

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JANUARY/FEBRUARY 2011 Vol. 112, No. 1 PRINT EDITION ISSN 0316-4004

A Business Information Group Publication ON-LINE EDITION ISSN 1923-3515

FEATURES

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Federal Funding Fires Up Energy Projects Pulp and paper companies are putting almost $1 billion in black liquor credits to work on energy- and environment-related projects. Our coverage includes a complete list of announced projects to date, plus details on Zellstoff Celgar’s Green Energy Project, the first to receive PPGTP funding.

FEDERAL FUNDING

8

Forest Products Summit Set for Vancouver Hundreds of the leading thinkers in the forest products industry will be gathering in Vancouver in May for the Global Forest Products Leadership Summit. The event includes: PricewaterhouseCoopers’ Global Forest & Paper Industry Conference, the Pulp and Paper Products Council’s International Pulp Week, and International Wood Markets Group’s Global Wood Products Industry & Market Conference.

MEETING IN VANCOUVER

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GASIFICATION ASSESSMENT

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Kruger’s Biomass Gasifier Fuels Customers’ Need for Green A life cycle assessment confirms that biomass gasification has quantifiable environmental benefits to show customers: fewer GHG emissions, less fossil fuel, better air quality.

TECHNICAL PAPERS Peer-reviewed technical papers and abstracts from PAPTAC will return next month.

Watch for the PaperWeek Reporter in the March/April issue of Pulp & Paper Canada

IN EVERY ISSUE

MISSION STATEMENT:

To promote the pulp and paper industry in Canada by publishing news of the people and their innovations in research, technology, management and financing, as well as forecasts of future trends.

Authorized to publish papers of the Pulp and Paper Technical Association of Canada, which are identified by the symbol Serving the industry since 1903.

pulpandpapercanada.com

4 Editorial 6 Industry News 19 Technology News 20 Classified Ads 22 Industry News: Green Transformation Update

January/February 2011 PULP & PAPER CANADA

3

EDITORIAL

A Win-Win Situation

I

t was amusing to see the spin put by various governments on the softwood lumber decision that came down in midJanuary.

Effectively, two opposing groups claimed victory following the decision of the international arbitrator of the Canada/U.S. Softwood Lumber Agreement. The U.S. claimed victory because, well, it won the case; Ontario claimed victory because the fine wasn’t nearly as hefty as the U.S. had requested.

The text of Ontario’s official press release reads: “Ontario is pleased with an international tribunal’s decision to limit an additional export tax on Ontario softwood lumber to only one-tenth of a per cent (0.1%). This is dramatically lower than the 20% the U.S. had originally requested. The tribunal rejected many of the United States’ claims and found that Ontario’s forestry programs had no significant adverse impact on U.S. producers.”

Way to put a positive spin on a negative situation. Even at the reduced tax rate that has Ontario so pleased, Quebec and Ontario lumber exporters, or the government, must come up with $60 million in compensation for breaching the agreement.

This follows the arbitrator’s conclusion last year that Canada must pay $68 million for another breach of the SLA by Ontario and Quebec exporters.

The next SLA case to go to the arbitrator, launched only days before this current decision, concerns B.C. mills paying “salvage” rates for beetle-killed wood.

Let’s move from fines to windfalls, specifically the Pulp and Paper Green Transformation Program. This program is a “win” on many fronts. The $1-billion program is clearly stimulating the industry and the economy (see story and a list of projects on page 8). The federal government’s infusion of cash is allowing many mills to expand their capacity to generate electrical power from either biomass or black liquor.

Some will use the energy efficiency gains or additional power produced for their own purposes within the mill, but others are entering contracts to sell power to their provincial utility. Alberta Pacific, Cariboo Pulp, DMI, Howe Sound, Weyerhaeuser, and Zellstoff Celgar fall into the latter category.

The other benefit of the government’s funding of energy and environmental projects is that it gives mills an easy answer when suppliers question their efforts to improve sustainability.

Kruger Products’ Frank Van Biesen explains the pressure from retailers in this month’s story about the life cycle assessment of his biomass gasification project in B.C. All of these Green Transformation projects have the additional benefit of being a green marketing tool. Win-win.

EDITORIAL Editor CINDY MACDONALD 416-510-6755 cindy@pulpandpapercanada.com Contributing Editors HEATHER LYNCH

Sustaining member, Pulp and Paper Technical Association of Canada; Member, Canadian Business Press and Audit Bureau of Circulation.

ADVISORY BOARD Richard Foucault Greg Hay Dr. Richard Kerekes Barbara van Lierop Dr. David McDonald Dennis McNinch Dr. Yonghao Ni Bryant Prosser Dr. Paul Stuart Ross Williams

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INDUSTRY NEWS Ontario will proceed with tenure reform

THUNDER BAY, ONT. — The Government of Ontario intends to introduce legislation later this year that would modernize its forest tenure and pricing system. This proposed system, if passed, would establish two governance models for managing and harvesting wood from Ontario’s forests.

Local Forest Management Corporations (LFMCs) would be government agencies that manage Crown forests and oversee the competitive sale of the timber in a given area. Enhanced Shareholder Sustainable Forest Licences would consist of a group of mills and/or harvesters that collectively form a new company to manage Crown forests under the Sustainable Forest Licence that is issued to them.

The new rules are intended to help make Ontario’s timber supply and prices more responsive to market demand, create new business opportunities for entrepreneurs, and facilitate greater local and Aboriginal participation in the sector.

The introduction of this legistlation follows several months of consultation on the proposed framework released last April.

The Ontario Forest Industries Association has spoken out in favor of the proposed changes. “We want to thank Minister Gravelle for carefully considering our concerns regarding tenure and pricing reform. The proposed path forward is a positive development and provides much needed certainty for operating

Announcing Ontario’s intention to proceed with tenure reform, Minister of Northern Development, Mines and Forestry Michael Gravelle (left) was accompanied by Jamie Lim of OFIA and Harold Wilson, president of the Thunder Bay Chamber of Commerce.

mills, while creating opportunities for new investment in the sector,” says OFIA president Jamie Lim. Linda Jeffrey, Minister of Natural Resources, says the proposed legislation does respond to some concerns raised during the public discussions held last fall. “Our approach contains many of their recommendations, including more involvement by local and Aboriginal communities as well as the separation of forest management operations from the mills where warranted.”

Crown timber is currently harvested from nearly 40 Sustainable Forest Licences spread across northern and eastern Ontario.

Gap diminishes between East and West fibre costs

over $1000 per tonne compared with $840 per tonne in the same quarter in 2009. Producers were faced with higher fibre costs during the quarter, but benefited from increased and record production levels, PwC states.

Among pulp and paper producers in West, Mercer shows significant improvement, with net earnings of $62 million in Q3 2010, compared with loss of $22 million in Q3 2009. West Fraser bounces back with earnings of $45 million this year, compared with loss of $199 million in Q3 last year. Canfor also shows growth, while Catalyst Paper’s fortunes have declined, with net earnings of only $6 million in Q3 2010, compared with $13 million for the same time last year.

In the East, Domtar is down slightly compared with yearearlier figures, to $199 million for Q3 2010. Cascades is down slightly as well, at $30 million for Q3 2010. Tembec shows earnings growth to $2 million compared with a loss of $17 million one year earlier. And AbitibiBowater, operating under creditor protection at the time, recorded a loss of $637 million in Q3 2010, almost $300 million more than its year-earlier figure.

Forest companies have strong third quarter

Heat recovery system cuts energy use by 11% at Gatineau mill

SEATTLE, WASH — In the fourth quarter of 2010, the wood chip cost discrepancy between pulp mills in Western and Eastern Canada was the lowest it has been in 10 years, according to the North American Wood Fiber Review.

Over the past 20 years, pulp mills in Eastern Canada have consistently had higher wood fibre costs than the mills in the Western provinces, with the exception of a short period in 1995, the Review notes.

Because wood costs account for almost 50% of the production costs for Canadian pulp mills, companies in Eastern Canada have been at a competitive disadvantage.

Despite a price decline in Eastern Canada and an increase of almost 40% in one year in the West, pulp mills in British Columbia continue to have lower wood fibre costs than mills in the eastern provinces.

The North American Wood Fiber Review is published quarterly by Wood Resources International (WRI), a forest resource consulting firm.

Canadian forest products companies and paper producers recorded strong results and a solid performance for the third quarter of 2010 amid ongoing market uncertainty, PricewaterhouseCoopers reports.

In its latest report on the forest products and pulp and paper sectors, PwC says markets for pulp remained favorable during the quarter in spite of downward pressure exerted by the addition of idled capacity and reduced demand from China. Prices for NBSK pulp remained at near-record levels and averaged just

GATINEAU, QUE. — An innovative heat recovery technology is now operational at Kruger Products’ Gatineau mill, which manufactures tissue products for consumer and industrial use.

This technology will lower the mill’s total energy consumption by 11% and CO2 emissions by 14.5% (10,000 tonnes per year).

This $4.8-million project is one of several initiatives that Kruger Products has implemented as part of Sustainability 2015, the company’s five-year plan to reduce its environmental

FOR MORE DETAILS VISIT WWW.PULPANDPAPERCANADA.COM…CANADA-B.C. AGREEMENT SIMPLIFIES GHG DATA COLLECTION…TAPPI TO CO-PRO s s s

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PULP & PAPER CANADA January/February 2011

pulpandpapercanada.com

INDUSTRY NEWS footprint. The project was financed in part by Québec’s Agence de l’efficacité énergétique, which granted $1.9 million in financial assistance through its Heavy Oil Consumption Reduction Program.

Kruger Products partnered with Thermal Energy International to develop and install the heat recovery technology. The central heat recovery system will capture hot, humid air from two of the mill’s three paper machines and reuse it to heat process water as well as the facility itself during the winter.

Nova Scotia clarifies strategy for future forest policy

The Nova Scotia government has announced six strategic directions that will be the basis for the province’s future forestry policy. The new rules will reduce clearcutting, prohibit whole tree harvesting, and ensure commercial buyers of biomass are subject to the same rules as the forest industry.

The Mi’kmaq and key stakeholders will be invited to provide input before the policies are finalized. Rules and guide­lines to support these directions will become part of the next steps in the strategy process.

The strategic policy directions are: • Reduce the proportion of wood harvested by clear cutting to no more than 50% of all forest harvests over a five-year period.

• Prohibit removing whole trees from the forest site to maintain woody debris, which is important for soil and biodiversity management and is consistent with the province’s Renewable Electricity Plan. Christmas tree harvesting will be exempt.

• Incorporate forest biomass harvest requirements in the Code of Forest Practice and revise regulations to ensure commercial users of biomass for energy or fuel production are registered buyers and subject to the same rules as the forest industry.

• Analyze options for a province-wide annual allowable cut to limit total harvested amounts.

• Public funds will not go toward herbicide spraying for forestry.

• Private land owners will not need management plans to harvest their woodlots for non-commercial energy use.

The Department of Natural Resources is in the final phase of writing a natural resources strategy. The forest policy framework and more information is available at gov.ns.ca/natr.

Briefly…

Clearwater Paper Corporation has completed its acquisition of Cellu Tissue Holdings, Inc. The acquisition includes a tissue plant in St. Catharines, Ont. Kemira has announced price increases of five to 15% for its paper chemical products in all major markets to compensate for the energy impact, raw material costs, and increased freight costs.

ABB has opened a new factory in China for quality control systems and web imaging systems. ABB will transfer its entire QCS and WIS manufacturing business from its ­Ireland and Finland facilities to the new location.

AbitibiBowater emerges from bankruptcy protection; Garneau takes the reins

MONTREAL – Calling itself a transformed company, AbitibiBowater completed its reorganization and emerged in December 2010 from creditor protection.

“Through our restructuring efforts, we have transformed this organization and given AbitibiBowater a new future – one driven by a company- Richard Garneau wide commitment to profitability and sustainability,” stated then-president David J. Paterson. “By strengthening our competitiveness and dramatically improving our financial position, AbitibiBowater has become one of the lowest cost forest products companies in North America.”

David J. Paterson stepped down as president, after having led the company through its far-reaching restructuring.

Richard Garneau, a member of the Board of Directors of AbitibiBowater and the former president and CEO of Catalyst Paper, took over as president and CEO of AbitibiBowater on Jan. 1.

The company has streamlined its asset profile, closing or idling 3.4 million tonnes of paper capacity. This represents capacity reductions of 41% for newsprint and 32% for commercial printing papers. Wood products capacity was reduced by 21%.

As well, AbitibiBowater states it has developed a flexible mill portfolio with a mix of U.S., Canadian and international mills located strategically to support low-cost, on-time delivery as well as the ability to adapt to changing market dynamics.

The company has sold non-core assets and land holdings for total aggregate proceeds of more than $940 million.

The restructured entity has reduced its debt burden significantly, and eliminated $880 million of annual fixed costs.

The papermaker entered into agreements with provincial authorities in Ontario and Quebec, reducing annual pension fund contributions by approximately $200 million. These reductions have been made while registered pension plans continue to pay 100% of obligations to retirees and beneficiaries. The company will gradually move towards normalized solvency funding over a 10-year period.

A new executive team was announced in January, that will report directly to Richard Garneau, president and CEO. “The executive team we have put in place represents an excellent blend of proven experience and fresh thinking,” stated Garneau. “We believe that with the support of all company employees, we can deliver on our commitment to further reduce costs and enhance our competitiveness.”

Alain Boivin will join the company as senior vice-president, pulp and paper operations. Boivin most recently was vice-president of mill operations, central region at SmurfitStone Container Corporation and will assume his new responsibilities at AbitibiBowater on March 7, 2011.

RODUCE BIOPRO EXPO…SMITHERS GROUP ACQUIRES PIRA INTERNATIONAL…GREEN TRANSFORMATION PROGRAM INVESTS $278 MILLION IN UPGR s s s pulpandpapercanada.com

January/February 2011 PULP & PAPER CANADA

7

COVER STORY

Federal Funding Fires Up Energy Projects Politicians of all stripes, from the Prime Minister to local MPs, have been making funding announcements at mills across the country as the Pulp and Paper Green Transformation Fund distributes almost $1 billion for energy and environmental projects.

T

his will be a banner year for capital expenditures in the pulp and paper industry, thanks to federal government largesse. Pulp and paper companies are putting almost $1 billion in black liquor credits to work on energyand environment-related projects.

“Based on what we see, there will be a lot of expenditures in mills,” says Marie Dumontier, deputy director of Natural Resources Canada’s Pulp and Paper Green Transformation Program. “There was clearly a pent-up demand for this type of project.”

As of January, $642 million of the program funding had been allocated. If you also consider projects that are at various stages of the approval process, $845 million is spoken for.

The window of opportunity on these projects is short, but what an opportunity it is. The Pulp and Paper Green Transformation Program (PPGTP) was announced in June 2009. The first project was approved for funding in November of that year. The bulk of the work on these projects will have to be completed this year because costs incurred after the program end date of March 31, 2012, are not eligible.

Coming on the heels of a widespread downturn in 2008 and 2009, the PPGTP provides a green light for many projects that had been stalled. “When you consider the amount of planning [that must go into these types of projects], it shows there were many just waiting for financing,” says Dumontier. “Generally, in this industry, firms do have projects lined up, just waiting for capital.”

8

By Cindy Macdonald, Editor

Prime Minister Harper visited the Domtar Windsor mill to announce its $24.8 million grant.

Black liquor, golden opportunity

Within the confines of the program guidelines, the projects must either show an improvement in energy efficiency or environmental benefits. Accordingly, the projects approved to date have been boiler upgrades or conversions to biomass, installation of variable frequency drives, improvements to steam systems, improvements to air emissions, reductions in fresh water usage, and installation of equipment to generate “green” electricity.

“The future of Howe Sound, and the

PULP & PAPER CANADA January/February 2011

Canadian pulp and paper industry, is closely tied to improved energy efficiency and increased renewable energy production,” said Mac Palmiere, president and CEO of Howe Sound Pulp and Paper.

“The Pulp and Paper Green Transformation Program provides us with a golden opportunity to make investments that will help improve our performance in both of these key areas.”

Howe Sound is spending almost $43 million of PPGTP funding on upgrading its evaporators and converting its boiler to a newer design.

Anne Giardini, president of Weyer­ haeuser Company Ltd. is also pleased with the impetus the federal funding provides to the industry. Commenting on Weyerhaeuser’s purchase and installation of a new turbine generator for the Grande Prairie, Alta., mill, she said: “The support shown by Canada with this investment, together with the support from Alberta for this new turbine generator, has served as a catalyst for additional investment at the Grande Prairie mill that will result in the generation of even more renewable energy.”

The PPGTP helps more than just the pulp and paper industry. Program director Glenn Hargrove notes that PPGTP spending provides economic activity to the communities where the mills are located, and the environmental benefits are shared by all Canadians. Plus, the funding provides mills with the opportunity to diversify their revenue streams for better long-term business health, which is also good for workers and their communities. pulpandpapercanada.com

COVER STORY Company

PPGTP credits (million $)

Value of approved projects (million $)

Project outline

Announced

AbitibiBowater

$33.2

Alberta Pacific Forest Industries

$62.9

$62.9 Boyle, Alta.

Energy efficiency upgrades will allow the mill to make use of steam that was previously vented, and produce renewable energy for export to the grid.

Jan. 2011

AV Group

$36.4

$1.8 AV Cell Atholville, N.B.

Multiple projects will increase the production of renewable energy (electricity) by installing new capacitors in the existing electrical distribution system; install equipment that will reduce energy (steam) consumption, and installing a new steam shower and upgrading the third press rolls.

Sept. 2010

AV Group

$36.4

$2.4 AV Nackawic Inc. Nackawic, N.B.

Power boiler over-fire air system modification and bleach plant filtrate recycle project will increase production of energy from renewable sources, reduce consumption of fresh water for use in the bleach plant pulp washing process.

July 2010

Canfor Pulp L.P.

$122.2

$11.2 Prince George Pulp & Paper, Prince George, B.C.

Installation of an odour reduction system is expected to reduce the current ambient total reduced sulphur levels. The project includes installation of a collection system; a conditioning system; and an incineration system

July 2010

Canfor Pulp L.P.

$122.2

$4.4 Prince George Pulp & Paper and Intercontinental, Prince George, B.C.

Installation of two pipelines on an existing pipe bridge between the two mills. The pipelines will transfer pulp slurry from Prince George Mill to Intercontinental and filtrate back to Prince George Mill. The result will be increased the production of brown pulp to generate additional black liquor solids which will be used to generate additional electrical power.

July 2010

Canfor Pulp L.P.

$122.2

$100.2 Northwood Pulp, Prince George, B.C.

Upgrade recovery boiler, evaporators, and emissions reduction equipment.

Jan. 2011

Cascades Inc.

$6.1

$0.08 Norampac Trenton

Improvements to heat exchangers will reduce fossil fuel use.

Aug. 2010

Catalyst Paper

$18

Daishowa Marubeni International Inc.

$59.1

$40.6 Peace River, Alta.

Installation and upgrading of systems to increase the production and export of power from renewable sources, plus systems that will reduce recovery boiler particulate emissions.

July 2010

Domtar Pulp and Paper Products Inc.

$143.5

$1.0 Espanola, Ont.

Installation of a refurbished wood waste grinder will allow the mill to process bark more effectively for the production of renewable energy.

June 2010

Domtar Pulp and Paper Products Inc.

$143.5

$0.7 Espanola, Ont.

Replace aerators with more energy-efficient models.

Nov. 2010 continued on page 10

“The Green Transformation Program has a larger impact than just the mills,” Dumontier agrees. “We really see it as very important for the whole industry – for suppliers, consultants, local contractors, tradespeople. It requires hundreds of tradespeople to install equipment and perform feasibility studies.”

Energy: Use less, produce more

Several recipients of PPGTP support noted that the investment in reducing their energy consumption provides a competitive boost.

At West Fraser’s Hinton, Alta., pulp mill, $37 million of PPGTP funding will be used to install new components and upgrade an existing boiler and pulp machine in order to increase energy efficiency and renewable electricity generation. Combined, these capital improvement projects will produce more than 10,000 megawatt hours of additional green power per year.

“The upgrades to the recovery boiler and pulp machine will allow the mill to produce more green power, reduce its pulpandpapercanada.com

natural gas consumption, and lower its carbon footprint. The successful completion of these projects is an important step for Hinton Pulp in improving its overall competitiveness and long-term outlook,” said Brian Grantham, general manager, Hinton Pulp.

As a result of this project and other initiatives, pulp production is expected to increase to 420,000 tonnes, returning the mill to levels achieved when it ran two production lines.

In many cases, PPGTP projects have allowed mills to produce more electricity in excess of their own needs, cementing their position as power producers.

Environmental Impact

So far, all the PPGTP projects combined will increase renewable energy production by 1.7 ­million megawatt hours per year. That will power 140,000 homes.

They also generate energy savings (mostly thermal energy) of 2.5 million gigajoules per year, equivalent to powering 60,000 homes per year.

The projects will also reduce greenhouse gases by 230,000 tonnes per year, equivalent to removing 65,000 cars from the road.

Says Palmiere of Howe Sound: “As a result of this investment in our boiler, we will become one of the largest independent producers of wood-fuelled renewable electricity in British Columbia.”

Improving their environmental performance also gives mills a marketing edge.

“These Green Transformation Program projects will provide both environmental and socio-economic benefits for our employees and our community,” said Bob Snow, technical manager, Tolko’s Manitoba Kraft Papers Division. Tolko Industries’ kraft paper mill in The Pas, Manitoba, will receive $2.26 million in funding for alterations to the power and recovery boilers to promote better fuel combustion.

The new equipment will increase the production of thermal energy from wood waste and black liquor by close to 114,000 gigajoules a year. In a press release, the company states that by reinforcing its environmental stewardship, it is better able to meet market demands for sustainably manufactured pulp and paper products.

January/February 2011 PULP & PAPER CANADA

9

COVER STORY Company

PPGTP credits (million $)

Value of approved projects (million $)

Project outline

Announced

Domtar Pulp and Paper Products Inc.

$143.5

$22.7 Dryden, Ont.

Installing a new 15 MW turbogenerator, upgrading the recovery boiler feedwater treatment system, and installing a second steam condenser.

March 2010

Domtar Pulp and Paper Products Inc.

$143.5

$57.6 Kamloops, B.C.

Upgrade of the No. 2 Recovery Boiler and a suite of capital upgrades to the mill’s air emissions control equipment.

March 2010

Domtar Pulp and Paper Products

$143.5

$17.3 Kamloops, B.C.

Upgrading equipment and reusing steam and hot water wherever possible will yield additional renewable electricity.

Jan. 2011

Domtar Pulp and Paper

$143.5

$24.8 million Windsor, Que.

Upgrading biomass boiler and its handling capacity. Reducing steam demand for two paper machines by installing new steam boxes to better control moisture content of the papers; installing a stock screening system; and dedicating an existing pulp storage tank for recycled pulp storage.

Jan. 2011

Fraser Papers (split between buyers of two former Fraser mills: Twin Rivers Paper Co. Inc. and Fortress Paper)

$33.1

$6.2 Twin Rivers Paper Co. Inc. Edmundston, N.B.

Variable frequency drive installations will result in reduced electrical energy consumption and fresh water usage. The installation of pumps, piping and controls to will reduce the mill’s use of fresh water and reduce steam usage.

Sept. 2010

Fraser Papers (split between buyers of two former Fraser mills: Twin Rivers Paper Co. Inc. and Fortress Paper)

$33.1

$14.8 Twin Rivers Paper Co. Inc. Edmundston, N.B.

Alkali extraction of sulphite brownstock.

Sept. 2010

Howe Sound Pulp & Paper

$45.5

$6 Port Mellon, B.C.

Replacement of elements in the first evaporator effect resulting in an increase in capacity of the evaporators.

March 2010

Howe Sound Pulp and Paper

$45.5

$36.7 Port Mellon, B.C.

Conversion of the existing stoker-grate boiler, installation of associated auxiliary equipment, and installation of an economizer on the boiler. This will allow for the additional generation of power and a change in fuel from natural gas to wood and bark.

Sept. 2010

J.D. Irving Ltd.

$33.4

$9.1 Irving Paper Ltd. Saint John, N.B.

Installation of new heat exchangers and piping, and the modification of process stream flows to recover waste heat from various areas of the pulping process and from wastewater effluent streams.

Sept. 2010

J.D. Irving Ltd.

$33.4

$1.3 Irving Paper Ltd. Saint John, N.B.

Steam reduction project.

Jan. 2011

J.D. Irving Ltd.

$33.4

$22.1 Lake Utopia Pulp St. George, N.B.

Installation and operation of a boiler fuelled by biomass and pollution control equipment.

March 2010

Kruger Wayagamack

$6.9

$0.6 Trois-Rivieres, Que.

Meadow Lake Mechanical Pulp

$2.6

Nanaimo Forest Products

$26.9

Neucel Specialty Cellulose Ltd.

$6.5

Northern Pulp Nova Scotia

$28.1

SFK Pulp (now Fibrek)

$20.9

Smurfit-Stone Container Corp.

$29.6

Tembec Inc.

$24.2

Terrace Bay Pulp Inc.

$19.2

Tolko Industries Tolko Industries

April 2010

$4.3 Harmac Pacific mill, Nanaimo, B.C.

Hog press installation and kiln efficiency improvement.

Sept. 2010

$18.9 Matane, Que.

New anaerobic treatment facility treats effluent and collects the methane gas produced in the treatment process, allowing it to be used as a bio-fuel for drying pulp. A second component involves the installation of an electric boiler that will replace the current heavy oil fuelled boiler.

Jan. 2011

$13.4

$0.8 The Pas, Manitoba

New evaporator mini-boil system will allow the mill to clean its existing evaporator and better maintain its efficiency without having to stop production.

June 2010

$13.4

$2.26 The Pas, Manitoba

Upgrades to power and recovery boilers.

Oct. 2010 continued on page 12

Investments for the long term

At AV Nackawic, PPGTP funding will support upgrades that will reduce the mill’s water and fossil fuel consumption.

By recycling filtrate within the bleach plant process the mill will reduce the amount of chemicals used in the pulping process and the amount of water consumed.

A second project will lead to more efficient combustion in the boiler, generating 10

more renewable energy and displacing fossil fuel use.

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

PULP & PAPER CANADA January/February 2011

Halfway through the PPGTP’s threeyear run, both Dumontier and Hargrove are pleased with the program’s success.

“Collaboration and uptake from the industry has been excellent,” says Dumontier. And why wouldn’t it be?

This is a golden opportunity for com­ panies to make sound investments that will have long-term, beneficial effects on both the mills and their communities. pulpandpapercanada.com

00604_281008

Every dimension covered.

That’s inspiration.

One advantage with Eka Chemicals is a whole world of knowledge at your disposal. Another is what Antonio Carlos Francisco in Brazil represents: true understanding of local needs and business culture.

Our Chemical Island concept is an excellent example. During the construction of a Chemical Island at VCP in Três Lagoas, our Swedish and Brazilian engineers worked side by side with local contractors to accommodate our customer’s every need. The result is state-of-the-art, cost-efficient, safe, reliable and environmentally friendly production of sodium chlorate and

chlorine dioxide. Plus the handling of other pulp makingchemicals.

As Antonio says, our purpose isn’t just to make your plant more competitive today, but also to give you a head start once the world economy enters a new growth phase. Joining forces simply means more good moments to share – as they often say in Brazil.

Inspiring paper all over the world is our inspiration. Meet us at eka.com.

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COVER STORY Company

PPGTP credits (million $)

Value of approved projects (million $)

Project outline

Announced

West Fraser Mills Inc./Daishowa Marubeni International Inc.

West Fraser $88.4; DMI $59.1

$41.5 Cariboo Pulp and Paper, Quesnel, B.C.

Upgrade power boiler and hog fuel handling system, install a steam turbine and cooling tower, and undertake steam reduction projects.

Aug. 2010

West Fraser Mills Ltd.

$88.4

$15 Hinton, Alta.

Purchase and installation of a Pressure Diffusion Washer stage that will allow for reduced raw water requirements to the washing system. Also, pump to supply filtrate to the Pressure Diffuser and an additional black liquor filter.

May 2010

West Fraser Mills Ltd.

$88.4

$37.85 Hinton, Alta.

Energy efficiency upgrade of pulp machine. Rebuild will boost capacity and allow mill to generate more green energy.

Nov. 2010

Weyerhaeuser

$32.4

$32.4 Grande Prairie, Alta.

Purchase and installation of a turbine generator and the associated fans, heaters, piping, valves, instrumentation and electrical, along with a single story concrete and steel building.

March 2010

Zellstoff Celgar

$57.8

$40 Castlegar, B.C.

Installation of condensing turbine and steam reduction projects to increase production of renewable energy.

Nov 2009

Zellstoff Celgar completes transformation to pulp and power producer

By Cindy Macdonald, Editor

O

nly weeks before the federal government’s Green Transformation Program was announced, Mercer’s Green Energy Project at Zellstoff Celgar had ground to a halt due to lack of funding. That was 2009, and things were tough in the pulp business. But with the federal financing, the $64-million project resumed, and on Sept. 28, 2010, Zellstoff Celgar came online as a power producer.

“We’re not just a pulp producer anymore, and it requires a change in our mindset,” explains Alan Hitzroth, managing director of operations at the Zellstoff Celgar mill in Castlegar, B.C. “It can change how you operate your mill. For example, you could slow down a pulp machine to conserve steam and generate more electricity,” Hitzroth comments.

“You can choose to optimize electricity production.”

The project began to take shape in April of 2008. In the later months of 2008, Mercer International was trying to get financing for the project, “but it was almost impossible to arrange financing at that time due ot the downturn in the economy,” Hitzroth recalls.

In May 2009, the project was put on hold due to lack of funding. In June, the government threw the industry a lifeline, in the

The turbine is only one part of the green energy project that turned Zellstoff Celgar into a provider of renewable-sourced electricity.

12

PULP & PAPER CANADA January/February 2011

form of the Pulp and Paper Green Transformation Program.

“By November we had the project back up and running. The Green Transformation Program really saved this project,” he says.

Because much of the preliminary engineering work and environmental approvals had been completed, Mercer’s Green Energy Project was the first to receive PPGTP funding.

The project, for which the final tally was $64 million, involved the installation of a 48-megawatt condensing turbine, and a rebuild of the existing hog boiler to bring it back to nameplate capacity. The rebuild allowed the mill to burn more hog fuel, and generate more steam. In addition, Hitzroth says there were a number of pinch projects implemented that improved energy efficiency and reduced steam demand.

“Prior to the project, we were already exporting some excess electricity onto the grid, and we also had excess steam which we were venting to the atmosphere,” he states.

The mill generates steam in two boilers, burning hog fuel in the power boiler and and black liquor the recovery boiler. The steam is then used for heating, drying, and other process functions. Excess steam is directed to the new condensing turbine, which generates electricity.

This was truly an international venture. The turbine and generator were supplied by Shin Nippon Manufacturing Co. Ltd. of Japan, which, in turn purchased the generator from Brush Turbogenerators, a British company. The condenser was supplied by Quebec-based GLV, with components manufactured

by Holtech International Group, a U.S.-based supplier for the energy sector.

Engineering on the project was performed by Ontario-based Cook Engineering.

The cogeneration facility is expected to produce 238 gigawatt hours of electricity annually for sale to BC Hydro under the terms of a 10-year electricity purchase agreement.

“To maximize power production, we have to maximize pulp production,” says Hitzroth. “They go hand-in-hand.”

PPC pulpandpapercanada.com

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CONFERENCE PREVIEW

Forest Products Summit Set for Vancouver Wednesday, May 11

PricewaterhouseCoopers 24th Annual Global Forest & Paper Industry Conference

Changing Directions: Opportunities and Outlook for People, Products and Markets CEOs, senior executives, customers, suppliers, government policy makers and PwC leaders will explore how the forest products sector is changing directions and how this can translate into fresh opportunities and new sources of value for your company.

This year PwC has invited customers to take centre stage and discuss what opportunities are arising for forest products companies as a result of shifts they are making in their businesses. Also on the agenda, industry-leading CFOs and CEOs will describe how they are taking the bull by its horns and making some powerful changes to their business strategies and market direction.

Last year’s conference, Transformation Through Innovation, was a huge success, with more than 400 senior executives in attendance.

The conference will be held at the Westin Bayshore Resort & Marina, situated in downtown Vancouver on the shores of Coal Harbour. PwC conference delegates are eligible to take advantage of a preferred rate.

For more information or to register, visit www.pwc. com/fpp.

Location: Westin Bayshore Resort & Marina

14

PULP & PAPER CANADA January/February 2011

Global Forest & Paper Industry Conference: ­Speakers

Paul Quinn Paper and Forest Products Analyst, RBC Capital Markets, Vancouver Phillip Crawley Publisher and CEO, Globe and Mail, Toronto Chad Wasilenkoff Chief Executive Officer, Fortress Paper Ltd., Vancouver Russell Taylor President, International Wood Markets Group Inc., Vancouver David Walker Managing Director, Kauri Capital Pte. Ltd., Singapore, Hong Kong Tom Wright Director, Hawkins Wright Ltd., London, UK Joe Nemeth President and CEO, Canfor Pulp Partnership Limited, Vancouver José Penido Chairman of the Board, Fibria Celulose, Sao Paulo, Brazil

pulpandpapercanada.com

CONFERENCE PREVIEW

H

undreds of the leading thinkers in the forest products industry will be gathering in Vancouver in May for the Global Forest Products Leadership Summit. Three organizations have co-ordinated their events to create the Summit, so that participants can spend several days in the company of peers and experts.

Running May 8-12, Summit 2011 is a multi-day

series of events and conferences focused on the global pulp, paper, wood products and fiber-based packaging industries. Participating events are: PricewaterhouseCoopers’ Global Forest & Paper Industry Conference, the Pulp and Paper Products Council’s International Pulp Week, and International Wood Markets Group’s Global Wood Products Industry & Market Conference.

Tuesday, May 10

Sunday, May 8 to Wednesday, May 11

The Global Wood Products Industry & Market Conference

International Pulp Week, Pulp and Paper Products Council

Assessing the Inter-Connectiveness of Global Supply Chain Dynamics & Emerging Market Opportunities & Constraints This one-day conference presented by International Wood Markets Group will offer attendees a very timely and strategic perspective to better determine when markets will rebound and identify existing opportunities for growth.

This event is geared to those following, or involved in, the North American and/or international trade of solid wood products, especially those interested in what could be happening next in terms of market/industry opportunities, issues and threats to commodity wood products.

Topics of potential interest to pulp and paper industry players are: • B.C.’s mountain pine beetle epidemic and the evolving lumber quality/economics, including lumber appearance or structural issues and the looming North American supply disruption.

• The impact of new revenue streams from wood pellets and bio-energy.

• Global timber supply/demand trends: Where is the wood?

For more information, visit: www.woodmarkets.com/ conf_conferences.html.

Location: Westin Bayshore Hotel

pulpandpapercanada.com

The eighth edition of International Pulp Week (IPW) returns to beautiful Vancouver on May 8. This year brings many changes to the usual IPW format. PPPC will be working with professional services and consulting firm Price­water­house­Coopers LLP (PwC) to create a multiday series of conferences and events during the week of May 8, 2011 that will focus on the global forest products sector.

International Pulp Week will begin with the traditional Opening Cocktail, allowing event participants the chance to meet with delegates from more than 25 countries.

Monday begins with a customer forum in the morning.

On Tuesday, the market pulp open forum and press and analyst briefing fill the morning.

All scheduled PPPC conferences and events will take place at the Fairmont Hotel Vancouver. A special room rate of $245 (plus taxes) has been secured at Hotel Vancouver for all IPW attendees. For more information, visit ­www.internationalpulpweek.com or www.pppc.org.

Location: Fairmont Hotel Vancouver

January/February 2011 PULP & PAPER CANADA

15

LIFE CYCLE ASSESSMENT

Kruger’s Biomass Gasifier Fuels Customers’ Need for Green Biomass gasification has quantifiable environmental benefits to show customers: fewer GHG emissions, less fossil fuel, better air quality.

By Tony Kryzanowski

A

n investment by Kruger Products L.P. in a biomass gasification system at its New Westminster, B.C. tissue mill is giving the company a competitive advantage, as well as greater assurance that it will be allowed to continue to do business with its more environmentally sensitive retail customers.

“It is becoming the price of entry,” says Kruger Products vice-president of technology, Frank van Biesen. “The Walmarts of the world are creating scorecards and rigorous metrics around supplier performance, leading to their own environmental and sustainability position, whether it is carbon footprinting, package reduction, etc.”

He adds that it is literally impossible now to play in that retail market space, which also includes companies like Costco, unless, as a supplier, you are able to demonstrate that you are doing

something constructive, measurable, and meaningful regarding environmental impact reductions or improvements.

A life-cycle assessment confirms that the biomass gasification technology provided by Nexterra Energy Systems Corp. for the New Westminster site fits the bill for constructive, measurable environmental benefits.

The syngas produced by Kruger’s twin gasifier system heats about 65% of the tissue mill’s process steam needs in summer and 45% in winter, saving the company more than $1 million annually in natural gas costs.

LCA confirms benefit of biomass

The project delivers a number of environmental dividends that the company anticipates will gain the attention of its customers. FPInnovations conducted a life cycle assessment (LCA) study of the Air emissions were an important consideration at Kruger’s New Westminster site, because of its suburban location. At lef t is the gasification unit and the electrostatic precipitator.

16

PULP & PAPER CANADA January/February 2011

project to help validate the environmental benefits of this technology compared with the old fossil fuel-based energy system.

“LCA was a disciplined approach to really look at the whole cradle to grave life cycle,” explains FPInnovations vicepresident, Alan Potter. “You can very easily create a strong environmental case just by looking at one part of the cycle, but by looking at the whole life cycle of the installation, you have a more realistic sense of what the impact of switching to biomass gasification is.”

The LCA study determined that by converting to syngas generated by the biomass gasifier, the mill’s greenhouse gas emissions dropped by about 22,000 tonnes of carbon dioxide equivalent annually. Because British Columbia has a carbon tax, Kruger estimates that this emissions reduction saved the company about $380,000 in provincial emission taxes in 2010 alone, increasing annually to $580,000.

By generating a portion of its energy needs from syngas, Kruger is consuming about 40,000 bone dry tonnes of woody biomass annually that would have ended up in landfills.

The project has also significantly improved the air quality emanating from the tissue mill, which is important considering that it is located right in New Westminster. FPInnovations has determined that particulate emissions from the mill are now practically zero, and carbon dioxide and volatile organic compounds emissions are also exceptionally low.

“There is definitely a marketing advantage, especially in the consumer products business, when there is a story to be told and there is concrete action which we can pulpandpapercanada.com

LIFE CYCLE ASSESSMENT demonstrate,” says van Biesen. “While you can’t go out into the marketplace and command a greater price for having done so, you can certainly strengthen and/or cement customer relationships with these types of initiatives.”

A first for gasification in paper

Kruger Products is the first Canadian pulp and paper company to install a commercial biomass gasification system with the direct syngas firing technology supplied

by B.C.-based Nexterra Energy Systems Corp. The project involved a consortium of Kruger, Nexterra, and FPInnovations, with funding support from Natural Resources Canada, Western Economic Diversification Canada, and the province of British Columbia.

“Ultimately, this project will take biomass technology one step closer to market, which will benefit the western Canadian economy overall and create jobs for Canadians, all while providing clean renewable energy options to business,” says Minister of State for Western Economic Diversification (WD), Lynne Yelich.

The biomass gasification installation is catching the attention of many other Canadian and international forest companies. Dozens of company representatives attended a recent open house hosted by the consortium that showcased the installation. Both Kruger and Nexterra continue to receive regular inquiries about the system.

Andrew Goodison of FPInnovations is a project manager with the Canadian forest industry’s Future Biopathways Initiative. He says he is not surprised by the amount of interest being shown by industry in the Kruger installation.

“Demonstration and validation of these types of projects really help reduce some of the risk factors to commercially acceptable levels; allowing the industry to further invest in implementing this type of technology,” he says. “It helps to reduce the technology risk and it allows us to stress-test some of the economics associated with these technologies.”

The Future Biopathways Initiative was launched by FPInnovations, the Canadian Forest Service and the Forest Products Association of Canada in 2009 to help provide industry with better baseline pulpandpapercanada.com

information on making inroads into the bio-economy and with a framework to support decision making. While helping industry understand the tradeoffs, information gathered as part of the Initiative is also helping to identify and fill knowledge gaps so that individual companies can select the right pathways for their specific circumstances.

Goodison emphasizes that it is important for each company to conduct a

detailed analysis to determine if adopting biomass gasification technology makes economic sense for them because each province treats such issues as the management and disposal of forestry biomass and carbon taxes differently. He adds that the short- to medium-term price for natural gas is one of the key drivers in how quickly companies will be prepared to invest in alternative energy projects like biomass gasification.

greening

Canada’s Forestry Sector If you have an innovative clean technology for the forestry industry, we want to hear from you.

Talk to us now about submitting a Statement of Interest.

SDTC supports the commercialization of clean technologies by Canadian companies.

sdtc.ca/applications January/February 2011 PULP & PAPER CANADA

17

LIFE CYCLE ASSESSMENT Project gains worldwide honours

Both Kruger Products and Nexterra are gaining attention from a variety of organizations eager to recognize technological advances that lighten industry’s footprint on the environment. Kruger Products has been nominated for a United Nations ‘Champions of the Earth’ Award, a Pulp & Paper International Award for Green Energy & Biofuels, and a Platts Global Energy Award for Green Energy Efficiency. Van Biesen also won a 2010 Canadian Award for Environmental Innovation sponsored by the Royal Canadian Geographical Society and 3M Canada, and Kruger Products received a 2010 Applied Energy Innovation Award from the Canadian Institute for Energy. Nexterra received the Best Application of Technology Award from the BC Technology Industry Association for the system it designed and installed in New Westminster.

Nexterra co-founder and CEO, Jonathan Rhone, believes this type of recognition will contribute to proliferation of the technology.

“These awards provide another source of validation and credibility that Nexterra’s technologies and products are doing what we say they are supposed to do,” says Rhone. “It creates confidence with other customers, helps to create awareness, and creates interest from new customers as well.”

Because of the many other business benefits that Kruger Products has achieved by switching to biomass-generated syngas, van Biesen says the company has no regrets about making the switch despite the current low price for natural gas.

“I don’t lose a moment of sleep over the subject because in the long term, I am sure that the price of natural gas will increase,”

he says. “But these days, with companies being short on capital, it’s not easy to make decisions based on long term pricing trends.

The tendency is to try to deliver shorter term paybacks.”

Van Biesen agrees that having validation is critical if the objective is to achieve greater use of this technology within the pulp and paper sector, given the nature of the industry.

“This industry has long been based on a tendency to not adopt technology unless it has already shown to be advantageous or proven,” he says. “It’s not a high tech business where risk taking is common. This business is too tight on margins, and too cost-oriented or commoditized. So if you are talking about investments and cost reduction investments, you want to know in advance that it is going to work.”

Given the nature of the industry, the level of continued interest has been encouraging.

“Independent of the Open House, we have had countless visits, tours and demonstrations to single entities who have requested entry for the purposes of seeing what’s going on, how it works, and evaluating the benefits and challenges,” says van Biesen. “That’s the acid test for me as to what level of interest there is.”

Kruger Products is considering the installation of similar technology at its other facilities where the economics can be justified, and is currently evaluating various approaches. To satisfy a changing market with an increasing number of environmentally sensitive retail customers, alternative technologies such as this are quickly becoming the price of entry.

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PULP & PAPER CANADA January/February 2011

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TECHNOLOGY NEWS LED conversion reduces operating and maintenance costs

A U.S.-based manufacturer of premium paper products, Rockline Industries, recently replaced 140 inefficient metal halide fixtures in its production facility with Dialight’s high-efficiency DuroSite LED High Bay luminaires. With 15 metal halide fixtures burning 12 hours a day, five days a week in the mixing room, and another 125 ablaze 24/7 in the manufacturing area at its Booneville, AR, baby wipes production facility, Rockline’s energy consumption was excessive. Not only has the conversion reduced energy consumption and operating costs, but it has also positioned the company to benefit from an energy-saving rebate incentive.

The conversion has slashed future energy consumption per fixture from approximately 400W to just 150W per unit.

It has also improved light performance and output, and reduced maintenance costs.

“The installation went very smoothly with minimal interruption to our manufacturing process,” said Nick Santoleri, vice-president of manufacturing at Rockline. “The beauty of it is that the new fixtures use all standard plugs, so

New roll technology for demanding calender applications

Increased fibre fraction and nanoparticle technology allow Gemini and Genesis composite roll covers from Xerium Technologies to deliver exceptional toughness and durability for the most demanding calender applications, while still maintaining superior surface finish.

Both covers feature Stowe Woodward’s exclusive Thermaguard™ base, which provides temperature consistency across the cover face. This consistency, combined with improved toughness, provides optimal abrasion resistance, ideal barring resistance, and reduced sheet marking.

Gemini and Genesis roll covers also demonstrate increased temperature stability and greater impact resistance.

Gemini is designed for online multinip and soft calender applications, while Genesis is engineered for the most demanding supercalender and soft calender applications.

Xerium Technologies, www.xerium.com pulpandpapercanada.com

there was no need for re-wiring during the retrofit.”

The long-life performance of the new Dialight LED fixtures means that Rockline can now expect to get as much as 10 years of life out of each fixture — with the first five covered by Dialight’s no-cost replacement warranty.

The company and its employees are both pleased with the significant temperature drop inside the manufacturing facility as a result of the new LED fixtures. Without the excess heat generated from the metal halide fixtures, Rockline’s HVAC engineers have noted a 20-ton (10% - 15%) reduction in air conditioning demand.

“Employees have noticed that it is cooler, and they like the light produced by the LEDs better than the old lights,” Santoleri said. “It’s not only more uniform, but the crisp white light is easier on the eyes.”

Dialight, www.dialight.com

Voith Paper launches nonradioactive moisture sensor

At the Tissue World conference and exhibition in Asia last November, Voith Paper introduced the Voith LSC TecoSens.

This sensor provides simultaneous online measurement of fibre weight and moisture based on an infrared spectroscopic measurement.

Fibre weight and moisture measurement can be performed with just one sensor and without the need for radioactive sources.

With the absence of radioactivity there is no need for special training of the service and maintenance staff.

The sensor is based on the proven Voith LSC infrared moisture sensor and measures the absorption of infrared light at four

characteristic wavelengths. In combination with optimized optics and sophisticated algorithms, the sensor provides superior signal to noise ratio and sensitivity.

The sensor is only available in combination with the Voith LSC TecoScan measurement system, which offers a manageable investment paired with low cost of ownership.

Voith Paper 920-731-7724, www.voithpaper.com

Rapid Kappa number and brightness data improve process control

ASD’s QualitySpec® K-B pulp analyzer can reduce the expense and risk of errors for two critical pulp-processing production measurements: Kappa number and ISO brightness.

ASD, a supplier of analytical instrumentation and materials measurement solutions, is closely watching the early adopters of the QualitySpec K-B, a near-infrared pulp analyzer designed to help mills obtain less expensive, more accurate production data.

“Resource, market and regulatory pressures have made efficiency gains even more important for mill operators,” says Ben Madden, ASD’s K-B product manager.

“The rapid and repeatable measurement of Kappa number and brightness enabled by the QualitySpec K-B gives operators more reliable data, tighter process control, and ultimately, increased profits.”

Accurate monitoring and adjustment of Kappa number and brightness levels in pulp guide the optimal balance of chemicals needed to produce marketready pulp. Traditionally, measurements are taken with time-consuming manual

Chloride removal technology gains ground

Noram has received a third order for a Precipitator Dust Purification (PDP™) system, for implementation at a kraft pulp mill in the US Southeast. Commissioning of the ionexchange system — the second for this client — is scheduled for June 2011.

The PDP technology is a joint development of Eco-Tec Ltd., FPInnovations and Noram Engineering. The unique ion-exchange system purges metal chlorides from the kraft mill recovery cycle, chlorides that otherwise result in sticky deposits in the recovery boiler and constrain overall mill production.

According to Noram, the technology affords very high selectivity, with losses of valuable chemicals amounting to less than 4% of the total treated. A further benefit of the system is the elimination of variations in the liquor-cycle chemistry caused by periodic purging PDP ion-exchange bed undergoing of precipitator dust. Implementation of factory acceptance testing the first two systems, commissioned in 2008 and 2010, yielded immediate benefits in chemical make-up requirements.

Noram Engineering & Constructors Ltd. 604-681-2030, www.noram-eng.com January/February 2011 PULP & PAPER CANADA

19

TECHNOLOGY NEWS processes — usually titration and hand-sheet preparation — with accuracy susceptible to operator-to-operator variability.

The QualitySpec K-B allows operators to analyze numerous line samples per hour from multiple bleach plant locations, delivering Kappa number and brightness results to the mill’s control system in less than four minutes. The system’s push-button, automated sample press quickly prepares samples for analysis.

ASD estimates that implementation of a QualitySpec K-B could generate $350,000 in chemical and off-grade pulp savings yearly at a mill that processes 1,000 tons of pulp per day.

The QualitySpec K-B was developed in cooperation with FPInnovations-PAPRICAN, a non-profit Canadian research and technological organization. The system correlates directly to TAPPI standard T-236 for Kappa number and ISO brightness.

ASD Inc. 303-444-6522, www.asdi.com

Suction roll covers and felts improve dryness

Tests at the Voith Paper Technology Center (PTC) in Heidenheim, Germany and initial field tests at customer sites have shown that using newly developed suction roll covers and felts can achieve increases in dry content of up to 1.5% — without the need for large investment costs.

The optimized groove technology applied to the polyurethane

roll covers by Voith Paper leads to significantly deeper and wider grooves, resulting in shortened flow paths for the extracted water.

This increased capacity enables larger quantities of water to be removed quickly and efficiently.

The resulting increased dry content is made possible by a structurally engineered SolarMax felt with optimized absorptive capacity. The structural treatment also enables the felt to bridge the open spaces created by the grooving, reducing the risk of marking the paper.

Voith Paper Fabric and Roll Systems 613-632-4163, www.voithpaper.com

Spraying Systems and Cloud form tank cleaning equipment alliance

Two leading suppliers of tank cleaning equipment are teaming up. The alliance enables Spraying Systems Co. and Cloud-Sellers to offer a wider range of products and expand into new markets.

“The alliance means we’ll have a high-quality product for just about every imaginable tank cleaning operation,” stated Jon Barber, director at Spraying Systems Co. The Cloud-Sellers products will be manufactured by Cloud Co. and branded as part of Spraying Systems’ TankJet® line.

Spraying Systems Co. 630-665-5000, www.spray.com

Green Transformation Program Projects Metso to rebuild Hinton Pulp’s pulp machine

Metso will supply Hinton Pulp with a rebuild of its PM 2 market pulp machine in Hinton, Alta., to increase the machine’s capacity and allow the mill to produce more green power. The rebuild will be delivered and installed late next year. It is valued at more than EUR 10 million (about $13.5 million in Canadian funds).

Metso’s delivery will include a new SymFormer MB top wire former, press section modifications, airborne dryer rebuild, dry end pulper rebuild, and a new DryWay high-capacity cutter layboy.

The rebuild will significantly increase the pulp machine’s capacity. The rebuilt 160-in. (4064-mm) wide machine will produce 750 g/m2 market pulp at speeds of more than 220 m/ min. Brian Grantham, general manager, Hinton Pulp, says the upgrade will allow the mill to produce more green power, as well as reduce its natural gas consumption and lower its carbon footprint.

Hinton Pulp is a division of West Fraser Timber Co. Ltd. The company announced earlier this month that the pulp machine upgrade and a boiler upgrade would be funded with credits from the Pulp and Paper Green Transformation Program.

Metso Paper Ltd. 514-335-5426, www.metso.com

Howe Sound chooses Metso for boiler conversion

Metso and Howe Sound Pulp & Paper have announced an agreement to retrofit the existing Babcock and Wilcox biomass power boiler at Howe Sound’s integrated pulp and paper mill in Port Mellon, B.C. Metso will convert the existing hydrograte stoker boiler to a Metso HYBEX™ Bubbling Fluidized Bed (BFB) boiler. This retrofit, scheduled for installation in June 2011, will increase the boiler’s steaming rate on biomass, improve the overall reliability and operability of the boiler, reduce maintenance costs, and increase the mill’s ability to produce power for the

20

PULP & PAPER CANADA January/February 2011

BC Hydro grid.

“As a result of this investment in our boiler, we will become one of the largest independent producers of wood-fuelled renewable electricity in British Columbia,” said Mac Palmiere, president and CEO of Howe Sound Pulp & Paper.

Funding for this project is part of the Green Transformation Program provided by the Canadian government.

Modification of the current boiler includes pressure parts, fuel and ash handling and installation. Complete automation of the boiler island includes the process automation system, emission monitoring and reporting, instrumentation and electrification retrofit.

The fluidized bed boiler was introduced in the late 1970s and since then over 120 Metso Power boilers of this design have been supplied. This technology offers an economical, flexible, cost-effective and environmentally compliant solution for burning low heat value, high moisture bio-fuels, according to Metso.

Metso Paper USA Inc. 704-541-1453, www.metso.com

Professional Connections Careers PulP & PaPer Jobs Freeman Staffing, Inc. specializes in the placement of engineers (all disciplines), production type supervisors, managers, mill and/or plant managers and corporate executives in the pulp & paper industry, North America-wide. For specific current job searches call us or contact our web site. All resumes are treated with complete confidentiality.

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21

INDUSTRY NEWS

Green Transformation Program Update Green Transformation Program allocates $278 million to projects January 6, 2011 was a day of federal largesse in pulp mill towns across the country. The Canadian government announced $278 million in project funding under the Pulp and Paper Green Transformation Program (PPGTP).

Recipients were Alberta Pacific Forest Industries, Canfor Pulp, Cariboo Pulp, Domtar, Irving Paper, and Twin Rivers Paper.

The largest allocation was to Canfor Pulp, which received $100.2 million to upgrade the recovery boiler, evaporator, and emissions reduction equipment at the Northwood Pulp mill in Prince George, B.C. The upgrade will allow for greater production of renewable electricity and increased energy efficiency, as well as reducing odor.

Efficiency improvement projects at Cariboo Pulp & Paper in Quesnel, B.C., will receive $41.5 million. The mill will upgrade its power boiler and hog fuel handling system, install a steam turbine and cooling tower, and undertake steam reduction projects. As a result, the mil will increase its electricity generating capacity by 18.1 megawatts and will be able to export surplus electrical energy.

Also in B.C., Domtar’s Kamloops mill will receive $17.3 million for three projects. By upgrading equipment and reusing steam and hot water wherever possible, the mill will gain an additional 79,000 megawatts of renewable electricity per year.

Alberta Pacific Forest Industries will invest its $62.9 million to make use of steam that is currently vented and export renewable energy to the Alberta electricity grid.

On the East Coast, the Edmunston, N.B., mill of Twin Rivers Paper Company will spend its $21-million allocation on a variety of projects that will generate additional thermal energy and boost energy efficiency.

Irving Paper will receive $10.4 million for two of its mills in Saint John, 22

N.B. The company will invest $9.1 million of the funding in a heat recovery project at its facility in Saint John. The remaining $1.3 million will be used for a steam reduction project at the Irving pulp and paper mill at Reversing Falls.

Domtar Windsor spends Green Transformation funds on biomass boiler Domtar will upgrade its biomass boiler and reduce steam demand for two paper machines with the $24.8 million in federal funding being provided for its Windsor Pulp Mill under the Pulp and Paper Green Transformation Program (PPGTP).

The boiler upgrade includes improving the lower furnace combustion to enable the boiler to operate at increased steam flow by replacing the lower furnace arches, upgrading the wood residue grinder, and adding two new hog grinders.

Lowering the steam demand will be accomplished by installing new steam boxes, installing a stock screening system, and dedicating an existing pulp storage tank for recycled pulp storage.

The new steam boxes will better control moisture content of the papers, produce a more uniform product, and save on steam to dry sheets “We are proud of these two projects which, in addition to improving our energy efficiency, will allow us to make an environmental contribution to the region,” said Martin Lorrion, general manager of the Domtar Windsor mill.

The two projects will reduce the mill’s consumption of natural gas by 17 million cubic metres a year and its greenhouse gas emissions by more than 9% per year.

PPGTP buys new turbine generator at Grande Prairie The federal government is investing $32-million in Green Transformation Program funding in a new turbine generator at Weyerhaeuser’s Grande Prairie pulp mill, so the facility can better meet

PULP & PAPER CANADA January/February 2011

its own energy needs and sell excess electricity to the grid.

The total value of the turbine generator project is approximately $50 million.

The Government of Alberta is contributing $4.5 million and Weyerhaeuser is investing the remaining amount.

Biomethane will be used to dry pulp at Tembec Matane Tembec has announced a capital investment totaling $25.7 million for its high-yield pulp mill located in Matane, Que. Funding for the biomethane project and a boiler conversion will come mainly from the federal government’s Green Transformation Program ($18.9 million) and the Province of Quebec through the Agence de l’efficacité énergétique’s Heavy Oil Consumption Reduction Program ($6.3 million).

“This investment will result in a significant reduction in costs for Matane and will allow the mill to be competitive in global markets for years to come,” said Yvon Pelletier, executive vice-president and president, Specialty Cellulose and Chemical Group. “The environmental benefits will also provide an appealing attribute in the marketplace.”

The new $23.9-million anaerobic treatment facility will treat effluent and collect the methane gas produced in the treatment process, allowing it to be used as a bio-fuel for drying the pulp produced at the site. With an estimated cost of $1.8 million, the second component involves the installation of an electric boiler that will replace the current heavy oil fuelled boiler.

The combined effect of the two components will result in the elimination of all heavy oils and the vast majority of the light oils currently used as a fuel source for the generation of the mill’s various process steam and drying requirements. They will also result in a significant improvement in the mill’s cost structure, with EBITDA projected to increase by $6 million on an annual basis, beginning when the project is completed in mid-2012.

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