New Contract Expands Bioenergy Opportunities In B.C.

BC Hydro and Tembec have expanded their bio-energy opportunities in B.C. by coming to an agreement which will increase BC Hydros purchase of clean, firm and cost-effective electricity from Tembecs Skookumchuck pulp mill

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New Contract Expands Bioenergy Opportunities In B.C.

Published: May 19, 2009

BC Hydro and Tembec have expanded their bio-energy opportunities in B.C. by coming to an agreement which will increase BC Hydros purchase of clean, firm and cost-effective electricity from Tembecs Skookumchuck pulp mill.

The 10-year contract will enhance the viability of the Skookumchuck facility, which employs 285 people and provides a long-term economic benefit to the community.

This contract is in response to the current governments green energy plan that has put a focus on clean sources of generation, says John Valley, Tembec executive vice-president of business development and corporate affairs.

Relative to the Skookumchuck mill, this approach will clearly result in environmental, energy, and economical positives.

Under the agreement, Tembec will enhance the power plant operation, which will lead to increased generation, enabling the mill to provide additional capacity and to sell more electricity to BC Hydro. As a result, BC Hydro will purchase from Tembec more than 228 gigawatt hours per year of energy, which is enough to power 23,000 homes.

The Skookumchuck power plant uses forest-based bio-mass, including sawmill residue, logging debris and other residual wood to generate electricity.

The primary sources of fuel will be bark generated by area sawmills, says Valley.

Jim Lopez, Tembecs president and chief executive officer feels the agreement is consistent with the provinces clean power production goals and will result in a combination of energy, economic and environmental benefits, which will allow the Skookumchuck mill to grow its energy business.

While this power contract will make an important contribution to the economics of the Skookumchuck mill, it is not, in and of itself, a solution, adds Valley.

The general economy remains challenging. However, this contract will make a significant contribution to enhancing the long-term viability of this mill.

Tembec is a leading Canadian forest products company with sales of $2.4 billion and operates 40 market pulp, paper and wood product manufacturing units in Canada.

Additional Information

Web Site: http://www.bclocalnews.com/kootenay_rockies/invermerevalleyecho/news/45372937.html

Category: Forestry>Biomass Energy

Region: BC - Canada

Ad Running: 5/21/2009-5/21/2011

Ad Posted: 5/21/2009 3:21:28 PM

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