Domtar Dryden Mill

Dryden, Ontario
22 May 2010

The Government of Canada is committed to promoting technologies that enhance energy efficiency and the production of renewable energy.  The Pulp and Paper Green Transformation Program (PPGTP) is part of a forest sector transformation and renewal that is laying the groundwork for a greener, more prosperous future for Canada’s pulp and paper sector.

Domtar will use the $22.7 million in federal funding being provided for its Dryden Pulp Mill under the PPGTP to increase the mill’s operational efficiencies and its production of green, clean electricity.  This will be accomplished by:

• Installing a second steam condenser to operate its wood waste boilers at a higher capacity and its turbine more efficiently.  This measure is expected to produce an additional 43,000 mega-watt hours (MWh) of electricity per year.

• Installing a second high pressure turbogenerator to increase the production of renewable electricity through use of high pressure and high temperature steam generated by the recovery boiler.  This measure is expected to produce an additional 85,400 MWh of electricity per year.

These upgrades will eliminate the need for Domtar to purchase over

11 MWh of power.  This will nearly balance the mill’s production and consumption of electricity, enhancing the mill’s environmental and commercial sustainability.

The Dryden mill has been in operation since 1911 and was acquired by Domtar in 2007.  The mill produces bleached softwood kraft pulp and handles chipped fibre through to finished pulp production and packaging.  It also deals with a range of chemical treatment processes, as well as water and effluent treatment.

How the Pulp and Paper Green Transformation Program Works

The Pulp and Paper Green Transformation Program provides companies with credits based on their use of black liquor ($0.16/litre) between January 1, 2009, and December 31, 2009.  Black liquor is a liquid by-product of the pulping process used to generate heat and power.

Firms then have until March 31, 2012, to draw on these credits to finance approved capital projects that offer demonstrable environmental benefits, such as improvements to their energy efficiency or their capacity to produce alternative energy.  The program is capped at $1 billion and total payments to Canadian industry will not exceed this amount.

Thirty-eight pulp and paper mills across Canada, representing 24 companies, generated credits under the Pulp and Paper Green Transformation Program based on their 2009 production levels of black liquor.

By investing in clean energy technologies, this program is helping the forest industry contribute to the growth of a domestic clean energy industry, creating and maintaining high-quality jobs for Canadians, and helping to protect and preserve our environment.

More details about the program and its eligibility requirements are available at http://www.nrcan.gc.ca/forests/federal-programs/13141.