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West Fraser Mills to Receive Government of Canada Funding for Environmental Improvements

Edmonton, Alberta, Canada, 12 November 2010 -- (Marketwire) -- The government of Canada is investing in West Fraser Mills Limited to improve the company's environmental performance and to help drive the evolution of Canada's forest sector.

The Hinton pulp mill will receive CAD 37.85 million from the Pulp and Paper Green Transformation Program (PPGTP) for two projects to improve energy efficiency at the mill and redirect more steam toward the production of renewable electricity — enough to meet the power needs of approximately 900 homes per year. 

PPGTP funding will be used to install new components and upgrade an existing boiler and pulp machine to increase energy efficiency and renewable electricity generation at the mill. Combined, these capital improvement projects will produce more than 10,000 megawatt hours of additional green power per year. These projects also will enable the mill to reduce its natural gas consumption by more than 112,000 gigajoules per year and cut greenhouse gas emissions by more than 5600 metric tons annually.

By reinforcing Hinton Pulp's environmental stewardship, the mill is able to meet market demands for sustainably manufactured pulp and paper products.

"We, as a company, are very pleased with the design and implementation of the government of Canada's Pulp and Paper Green Transformation Program. In order to receive the credits from the PPGTP, mills must invest capital in the projects that focus on energy and environmental improvements. The projects identified at Hinton Pulp meet both of these important criteria," said Brian Grantham, general manager, Hinton Pulp. "The upgrades to the recovery boiler and pulp machine will allow the mill to produce more green power, reduce its natural gas consumption, and lower its carbon footprint. The successful completion of these projects is an important step for Hinton Pulp in improving its overall competitiveness and long-term outlook."

Today's announcement complements and builds upon the success of many initiatives 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 CAD 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, under Canada's Economic Action Plan 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.


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