Peace River, Alberta, Canada, 08 July 2010 -- (Marketwire) -- The Government of Canada's investment of CAD 40.57 million in Daishowa-Marubeni International Ltd. (DMI) is improving the company's environmental performance and helping drive the evolution of Canada's forest sector. The Peace River Pulp Division (PRPD) will receive funding under the Pulp and Paper Green Transformation Program (PPGTP) for its Green Power Enhancement Project.
This project will increase the efficiency of the mill's production of green electrical power and decrease its environmental footprint. The primary benefit of this project is the production of an additional 126,000 megawatt-hours (MWh)/year of electricity generated from renewable sources that will be sold to the Alberta power grid — an anticipated 630% increase over current export levels and enough energy to power 10,588 homes annually.
Funding also will be used for upgrades that will improve the mill's energy efficiency.
"With the government of Canada's financial support, DMI will invest upwards of CAD 59 million in the PRPD facility as part of the Green Transformation Program," said company spokesperson Bill Downing. "It is only through the very well thought out and designed Pulp and Paper Green Transformation Program and the support of the government of Canada that we can make such a substantial project come to fruition. This investment will not only improve our environmental performance but also make us more competitive in a very capital intensive and competitive world pulp market."
DMI is one of 24 pulp and paper companies across Canada that qualified for credits under the CAD 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.
The Pulp and Paper Green Transformation Program complements initiatives that are being delivered under Canada's Economic Action Plan to sustain and improve the forest industry in Canada. "Budget 2010: Leading the Way on Jobs and Growth" is delivering CAD 100 million over four years to support 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 CAD 170 million to assist the development of next-generation forest products and expand global markets for Canadian forest products. This funding includes CAD 40 million to develop pilot-scale demonstrations under the Transformative Technologies Program.