Canfor Pulp will invest $26 million to upgrade two turbo-generators at its Northwood mill in Prince George. The upgrades will add 11 megawatts of capacity to the provincial grid.
A new agreement between BC Hydro and Canfor Pulp to generate renewable bio-energy will also provide 97 gigawatt hours of electricity supply annually - enough to power more than 8,800 homes.
In addition, Canfor’s investment will allow it to reduce its supply requirements from BC Hydro by 17 gigawatt hours a year.
“With the previous resources provided by Natural Resources Canada and the BC Hydro Integrated Power Offer, this project is the next phase of our plan to demonstrate Canfor Pulp’s continued commitment to maximizing the energy efficiency at our operations and support incremental generation of clean, renewable power,” said Brett Robinson, President, Canfor Pulp.
The Northwood turbine upgrade project is expected to be in-service by March 2014.
A previous electricity purchase agreement between BC Hydro and Canfor signed in early 2009 provides for 70 gigawatt hours of electricity annually.
Also, Canfor announced Dec. 17 that it will proceed with capital investments totalling an estimated $40 million in its Elko sawmill, located in the Kootenay region. This investment is part of a multi-year capital investment program aimed at enhancing productivity and cost performance across the company.
The Elko investment will include upgrades to the sawmill, increased kiln drying capacity as well as the construction of a greenfield planer mill complex. The Elko capital project will commence in the first quarter of 2013, with anticipated completion in the third quarter.