Buckeye Announces Energy Savings Project
Memphis, Tennessee, USA, 08 May 2007 --(BUSINESS WIRE)-- Buckeye Technologies Inc. (NYSE:BKI) today announced that its board of directors approved USD 4.5 million in capital spending to fund the first of a series of energy related projects that will allow Buckeye's wood cellulose plant in Perry, Florida, to become increasingly independent from fossil fuels for its energy needs. The projects will result in approximately 92% of the plant's energy coming from renewable or "green" energy sources in the future.
The cost of the entire project is expected to total USD 43 million. It includes the installation of a condensing turbine and upgrades to two existing recovery boilers and related systems. The initial spending will support installation of the condensing turbine with a total cost of USD 14 million. Project work will begin immediately, and the total project will take several years to complete. Once completed, this green energy initiative is expected to replace the need for the equivalent of 200,000 barrels of oil per year and increases electrical generating capability to more than 50 megawatts.
In addition to reducing the Foley plant's dependence on fossil fuel, these projects should result in further improvements to air quality, reducing sulfur air emissions by 93% and volatile organic compound emissions by 42%.
Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.