New York, New York, USA, 30 November 2009 -- Mercer International Inc. (Nasdaq: MERC, TSX:) today announced that its Celgar mill has entered into a CAD 40.0 million contribution agreement with the Canadian federal government for funding of the Celgar mill's green energy project. With the use of funding from the contribution agreement, Mercer expects construction of the Celgar Energy Project to resume shortly and to commence electricity generation by the third quarter of 2010.
This nonrepayable capital contribution to the Celgar Energy Project will improve the energy efficiency and environmental performance of the mill.
"We thank the government of Canada for developing and executing a very well designed program that will create considerable benefits for our company, the environment and the British Columbia communities that rely on the Celgar mill's operation," said Jimmy S.H. Lee, president and chairman.
Mercer has signed a 10 year electricity purchase contract with BC Hydro, British Columbia's primary public utility provider, for the sale of power generated by the Celgar Energy Project.
Approximately CAD 17.7 million of further funding may be available for use by the Celgar mill on other eligible projects until 31 March 2012, and a number of high return projects are currently under consideration to use such funding.
Mercer International Inc. is a global pulp manufacturing company. To obtain further information on the company, visit http://www.mercerint.com