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

QUIZ: Test your knowledge of Victoria Day

How much do you know about the monarch whose day we celebrate each May?

North Island Eagles minor rep ockey organization hand out year-end awards in Port McNeill

It was quite the season and then some for minor rep hockey here in the North Island.

North Island resident to campaign on climate, economy for Liberal Party seat in Ottawa

Peter Schwarzhoff joins race for the second time in North Island-Powell River riding

Press release: Port Alice Health Centre service model announced

“a sustainable and dependable model of health care service delivery in Port Alice is a priority”

First annual Pride Day coming to Port Hardy in August

Pride contributes to a more inclusive and safe community for LGBTQ+ identifying individuals.

UPDATE: B.C. pilot killed in Honduras plane crash

The crash happened in the Roatan Islands area, according to officials

Raptors beat Bucks 118-112 in 2OT thriller

Leonard has 36 points as Toronto cuts Milwaukee’s series lead to 2-1

‘Teams that win are tight’: B.C. Lions search for chemistry at training camp

The Lions added more than 50 new faces over the off-season, from coaching staff to key players

Rescue crews suspend search for Okanagan kayaker missing for three days

71-year-old Zygmunt Janiewicz was reported missing Friday

B.C. VIEWS: Reality of our plastic recycling routine exposed

Turns out dear old China wasn’t doing such a great job

Carbon dioxide at highest levels for over 2.5 million years, expert warns of 100 years of disruption

CO2 levels rising rapidly, now higher than at any point in humanity’s history

RCMP arrest violent offender on Vancouver Island

Police struggle with suspect and take him down with a taser

B.C. ferry stops to let black bear swim past near Nanaimo

Queen of Oak Bay brakes for wildlife in Nanaimo’s Departure Bay

Mother dead, child in critical condition after carbon monoxide poisoning at Shuswap campground

The woman was found unresponsive insider her tent and the youth was taken via air ambulance to hospital

Most Read