Government of Canada

Government of Canada

December 10, 2010 18:15 ET

Government of Canada Invests in Forest Industry Transformation at Catalyst Paper Pulp Mill

CROFTON, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2010) - The Government of Canada announced today an investment in new Canadian technology designed to improve the environmental performance and competitiveness of the forest products manufacturing sector.

The Honourable Stockwell Day, President of the Treasury Board, Minister for Asia Pacific Gateway and Minister responsible for British-Columbia, announced the $2.5 million investment at the Catalyst Paper mill in Crofton, British Columbia, where the project will take place. 

The Government of Canada's investment is part of the Transformative Technologies Pilot Scale Demonstration Program. Delivered through FPInnovations, this funding will see the implementation of state-of-the-art technologies to convert waste sludge at the Crofton pulp and paper mill into biogas and fertilizer.

"Our Government is investing in the evolution of Canada's forest industry by encouraging the development and adoption of Canadian technology," said Minister Day. "Projects like this one are essential to opening up market opportunities both at home and abroad, and to protecting Canadian jobs in forest-dependent communities."

The MicroSludge technology developed by Paradigm Environmental Technologies converts pulping sludge into renewable energy and fertilizer, decreasing capital and operating cost by replacing natural gas with biogas. This will help reduce the mill's carbon footprint and landfill waste. 

Other funding for the project includes a $1-million contribution from the B.C. Ministry of Forests, Mines and Lands and a $1.5-million contribution from the B.C. Bioenergy Network to Elemental Energy, the industrial lead on this project. Additional in-kind contributions are being made by Elemental Energy and Paradigm Environmental Technologies in conjunction with the University of British Columbia. Catalyst Paper is also contributing $1.12 million, which brings total funding to $6.12 million.

"The new technology being demonstrated at the Crofton mill clearly aligns with one of B.C.'s goals for clean energy development," said Pat Bell, B.C. Minister of Forests, Mines and Lands.

"We are excited to be implementing an innovative technology that has the potential to increase efficiency across the entire BC pulp and paper industry," said Michael Weedon, Executive Director of the B.C. Bioenergy Network. "The creation of a Collaborative Development and Demonstration Centre in the pulp and paper industry is another step toward developing a world-class bioenergy industry in British Columbia."

"As Canada's forest sector innovation hub, we believe that through multipartite projects we will be able to demonstrate the viability of new technologies with a view to creating and marketing new products and developing new markets," said Jim Dangerfield, Executive Vice-President, FPInnovations. "This partnership is exemplary in every respect."

"This exciting demonstration program is an example of how the government and industry can work together to implement innovative technologies to reduce cost and find innovative ways to generate clean and renewable energy from waste and help the forest industry to become more environmentally sustainable," said Gordon Skene, President and CEO of Paradigm Environmental Technologies.

Part of the strategic investments under the Government of Canada's two-year Economic Action Plan, the $40-million Transformative Technologies Pilot Scale Demonstration Program is administered by FPInnovations and supports moving new technologies from the laboratory into pre-commercial, pilot-scale demonstration projects at mill sites to demonstrate how these new products can be commercialized.


The Government of Canada today announced that $2.5 million under the Transformative Technologies Pilot Scale Demonstration Program will be provided to support a project at Catalyst Paper's Crofton pulp and paper mill in British Columbia designed to convert pulping waste sludge into biogas and fertilizer.

The following media backgrounders are available at

Government of Canada Supporting Forest Sector Renewal and Environmental Performance

Federal Assistance for Canada's Forest Sector and Communities

NRCan's news releases and backgrounders are available at

Contact Information

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    Natural Resources Canada, Ottawa
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