Natural Resources Canada

Natural Resources Canada

October 08, 2010 10:30 ET

Government of Canada Leading Forest Sector Renewal by Investing in Environmental Improvements at Tolko Industries Limited

THE PAS, MANITOBA--(Marketwire - Oct. 8, 2010) - The Government of Canada's investment in Tolko Industries Limited is helping drive the transformation of Canada's forest sector and sustain the many jobs it provides for Canadians, the Honourable Vic Toews, Minister of Public Safety, announced today.

Tolko's kraft paper mill in The Pas, Manitoba, will receive $2.26 million in funding under the Pulp and Paper Green Transformation Program (PPGTP) to improve the mill's energy efficiency and increase renewable energy production. The alterations to the power and recovery boilers will promote better fuel combustion. This investment will significantly improve the mill's environmental performance and is an example of the ongoing evolution of Canada's forest sector.

"Our support for these projects will help Tolko replace its fossil fuel consumption with renewable energy," said Minister Toews. "This is a good example of how government investments in energy-efficient technologies are lowering the environmental impact of Canada's forest industry and establishing the groundwork for a renewed, more competitive sector."

The new equipment will increase the production of thermal energy from wood waste, and black liquor, by close to 114,000 gigajoules a year — enough energy for 2,650 households. This increase will reduce the mill's need to use fossil fuels to compensate for renewable energy shortfalls — lowering The Pas mill's greenhouse gas emissions by around 10,000 tonnes per year. This is the equivalent to eliminating the emissions released by 2,600 cars a year.

By reinforcing its environmental stewardship, Tolko is better able to meet market demands for sustainably manufactured pulp and paper products.

"We thank the government for actively supporting the pulp and paper industry's advancement in applying green technologies," said Bob Snow, Technical Manager, Tolko's Manitoba Kraft Papers Division. "These Green Transformation Program projects will provide both environmental and socio-economic benefits for our employees and our community."

Tolko is one of 24 pulp and paper companies across Canada that qualified for credits under the $1-billion program, based on their 2009 production levels of black liquor, a liquid by-product of the pulping process used to generate heat and power.

Today's announcement complements and is building on the success of many initiatives in Canada's Economic Action Plan that are helping to sustain and enhance Canada's forest industry and the families and communities that depend on it. Budget 2010: Leading the Way on Jobs and Growth established the $100-million Investments in Forest Industry Transformation program to promote the development, commercialization and implementation of advanced technologies in the forest sector — helping create a world-class industry able to compete in the clean energy economy of tomorrow.

In addition, the Government of Canada has committed $170 million to assist the development of next-generation forest products and expand global markets for Canadian forest products. This funding includes $40 million to develop pilot-scale demonstrations under the Transformative Technologies Program.

FOR BROADCAST USE:

Public Safety Minister Vic Toews today announced that Tolko's kraft paper mill in The Pas, Manitoba, will receive $2.26 million under the Pulp and Paper Green Transformation Program. The funding will be used to improve the power boiler at the mill. This upgrade will lead to an increase in thermal energy production from wood waste and reduce costly maintenance shutdowns and the use of fossil fuels.

The following media backgrounder is available at www.nrcan.gc.ca/media:

Government of Canada Supporting Forest Industry Renewal and Environmental Performance

Federal Assistance for Canada's Forest Sector and Communities

NRCan's news releases and backgrounders are available at www.nrcan.gc.ca/media.

Contact Information

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