KENORA, ON — Kenora MP Greg Rickford was pleased to announce on behalf of Minister of Natural Resources Lisa Raitt, that the Conservative Government will be providing immediate access to funding for capital projects for Northwestern Ontario regional pulp and paper mills to improve their technological and environmental performance.
 
The Pulp and Paper Green Transformation Program is designed to create jobs, stimulate the industry and ensure pulp and paper mills are competitive as early signs of recovery from the global recession emerge.
 
This program allows Canadian pulp and paper companies that produced black liquor — a liquid by-product of the chemical pulping process that is used to generate renewable energy — in 2009 access to this $1-billion fund.
 
“We want to be ready for that recovery,” said Rickford, “that's why I am so pleased that Natural Resource Minister Raitt and International Trade Minister Day took the time to meet with me and listened to the concerns of stakeholders in the northwestern Ontario pulp and paper industry.” Rickford stressed to the Minister that regional pulp and paper mills needed help during this global recession and the unintended consequences of a black liquor tax credit in the United States have had a serious impact on regional mills.
 
Coming out of the recession Rickford emphasized that regional pulp mills needed to be competitive in terms of technological and environmental performance.  Rickford appreciates that the Minister took into account the importance of particular and somewhat unique issues northwestern Ontario pulp and paper mills are dealing with. This is about improving capacity and improving environmental impact in some cases. Rickford hopes and believes that mills in northwestern Ontario may become 100-percent energy self sufficient or very close to it. 
 
Credits have been issued to Abitibi-Bowater’s Thunder Bay and Fort Frances facilities - $33 Million, Domtar’s Dryden Plant - $27 Million, and Terrace Bay Pulp Inc. - $19 Million.
 
Qualified companies will be able to use the program to help finance green projects at any pulp and paper facility they own. As a result, many mills across Canada that did not generate credits through black liquor production will still benefit from this program.
 
Qualified companies are now required to submit specific project proposals for their facilities. Companies can expect to receive funding for their capital projects in late 2009 or early in 2010. Companies will then have until 2012 to apply the credits to environmental improvement projects.  In total, 24 pulp and paper companies across Canada have qualified for funding under the Pulp and Paper Green Transformation Program.
 
Greg spoke with local mill managers and officials of qualified companies. Their response was very positive.
 
Domtar’s corporate position is that this is a good news story for Domtar’s pulp operations across Canada. The local Dryden mill will be looking at specific projects that qualify under their explicit allocation of resources with the hopes of taking advantage of this good news program.
 
Abitibi –Bowater Thunder Bay officials are very encouraged by the news and look forward to upgrading their energy efficiencies and renewal energy production technologies.
 
Bob Bryson, Manager of Terrace Bay Pulp Inc., was particularly excited. “This is great news for the Terrace Bay pulp mill! It will allow us to move forward with energy efficient and production cost effective improvements in the very near future.”
 
“The Government of Canada is taking unprecedented steps by investing $1 billion in a program that will build a more sustainable future for Canada’s forest communities,” added Rickford. “The Pulp and Paper Green Transformation Program will generate new investments in pulp and paper facilities across Canada, making them greener and more sustainable.”
 
Canada’s Economic Action Plan has delivered significant investments to sustain and improve the forest industry in Canada.  The Government of Canada has committed a further $170 million to assist the forest industry in developing innovative products and expanding markets overseas. $40 million has also been invested to develop pilot-scale demonstrations developed under the Transformative Technologies Program.
 
Furthermore, the $1-billion Community Adjustment Fund is creating jobs and maintaining employment in communities affected by the global economic downturn, specifically forest-dependent communities.