Energy and Mines Minister Bill Bennett speaking at Catalyst Paper's distribution centre on the Fraser River in Surrey Thursday.

Pulp mills get break to save energy

Province unveils $100 million to help industry finance conservation projects as power rates hikes loom

Struggling B.C. pulp and paper mills are being offered $100 million in energy conservation subsidies that Energy Minister Bill Bennett says will pay off through power savings and a stabilized industry.

The three-year initiative will benefit seven thermo-mechanical pulp or paper mills run by Catalyst Paper, Canfor, West Fraser and Paper Excellence, which can get 75 per cent funding for energy-saving projects approved under the new PowerSmart program for industry.

The companies are huge power users, consuming 10 per cent of the electricity BC Hydro sells, and had warned rate increases of 28 per cent over the next five years could threaten their operations and cost local jobs.

Eligible mills are in Crofton, Port Alberni (a paper mill), Powell River, Taylor, Chetwynd, Port Mellon and Quesnel.

The industry’s challenges cast a long shadow in those towns, where pulp and paper jobs are critical to the local economy, and one of the firms – Catalyst – has been emerging from bankruptcy protection.

Encouraging reinvestment in power efficiency will mean savings for the companies involved, Bennett said, and will reduce provincial energy demand.

“BC Hydro will not have to spend $265 million on new generation because these four companies are going to conserve that much electricity,” Bennett said, adding it will also help protect thousands of jobs across the province.

Catalyst Paper president Joe Nemeth said steam now vented at the firm’s Powell River mill will be harnessed for power, reducing the plant’s draw on the grid.

“Electricity is about 30 per cent of our cost structure, so it’s a big deal,” he said.

The upgrades are expected to mean power cost savings of $17.5 million a year for the four companies.

NDP energy critic Adrian Dix said the province had no other choice but to step in with aid for the industry in light of the dramatic rate increases ahead.

“This was just going to bury them,” he said.

But Dix said government “incompetence” is to blame for the coming rate shock because of expensive power purchase deals, repeatedly deferred spending, among other decisions at BC Hydro.

“This is them desperately trying to deal with a problem they caused through inept energy policy in the past.”

Just Posted

Port McNeill cannabis committee to recommend to mayor and council designated zones for commercial marijuana agriculture

The committee unanimously voted for cannabis cultivation in M-1 (Mine Road), M-2, and A-1 zones.

Cafe Guido manager spills the beans on new coffee shop drive-thru

“The core drink menu is the same, but there will be new drinks - new cold drinks and new food”

Arrest made in Port Alice mail bomb incident

A 73 year old resident of Whitehorse, Yukon, was arrested on September 13th and remains in custody.

Municipal spending outpaces population growth 4-fold in B.C.: report

Canadian Federation of Independent Business has released its annual operational spending report

VIDEO: Messages of hope, encouragement line bars of B.C. bridge

WARNING: This story contains references to suicide and may not be appropriate for all audiences.

Scheer pushes Trudeau to re-start Energy East pipeline talks

Conservative Leader Andrew Scheer questioned the Prime Minister over Trans Mountain project

Mistaken identity: Missing dog claimed in Moose Jaw belongs to another family

Brennen Duncan was reunited with a white Kuvasz that was found in Saskatchewan

Abandoned kitten safe and sound thanks to B.C. homeless man

‘Jay’ found little black-and-white kitten in a carrier next to a dumpster by a Chilliwack pet store

Police chief defends controversial marijuana seizure

Advocates said cannabis was part of an opioid-substitution program in Vancouver’s Downtown Eastside

VIDEO: B.C. deer struggles with life-preserver caught in antlers

Campbell River resident captures entangled deer on camera

Trans Mountain completes Burrard Inlet spill exercise

Training required, some work continues on pipeline expansion

Supporters of B.C. man accused of murdering Belgian tourist pack courtoom

Family and friends of Sean McKenzie, 27, filled the gallery for brief court appearance in Chilliwack

Pot, cash, mansions: Judge divvies up illegal estate of divorcing B.C. couple

The Smiths ran a multi-million marijuana operation that spanned three counties

Most Read