The new turbo-generation unit will produce electricity from wood biomass and efficiencies within the pulping process using recaptured steam energy to help power the generator. Upgrades will also be made to the pulp mill’s boiler and hog fuel handling system.

During the 18-month construction period, the project is expected to create 85 full-time jobs in construction, engineering and technical work. Once complete, the new generating project is expected to produce 190 gigawatt hours of electricity annually for sale to BC Hydro or enough to power over 17,000 homes. Additionally, Nanaimo Forest Products will be implementing various energy efficiency projects resulting in 11 gigawatt hours per year of electricity savings.

Funding for the series of upgrades was made possible from Natural Resources Canada's Pulp and Paper Green Transformation Program ($27 million) and BC Hydro’s Power Smart Partners Industrial Program ($1 million for a vacuum pump system upgrade). BC Hydro is also helping fund an Energy Manager at Nanaimo Forest Products Ltd. who will develop and lead a sustainable energy management plan for the company focused on continuous energy improvement.

Revenues from power generation will improve Nanaimo Forest Products’ business model by incorporating a fixed revenue stream that is isolated from the volatility of the pulp market.

Quotes

Hon. Rich Coleman, Minister of Energy and Mines:
“These kinds of partnerships not only help create jobs for British Columbians, but also help to keep rates low. Clean energy projects also support economic development opportunities throughout B.C. and we commend Nanaimo Forest Products Ltd. on their upgrades which support both business viability and the local community.”

Doug Little, Vice-President, Energy Planning and Economic Development, BC Hydro
“Projects like this provide reliable, cost-effective clean energy and enable energy conservation. We need a mix of solutions to meet the growing demand for electricity: conserving energy, reinvesting in our heritage assets, and finding new sources of clean, made-in-B.C. energy.”
 
Levi Sampson, President, Nanaimo Forest Products Ltd.
“Investments in power generation facilities can be capital intensive. Support from the provincial and federal government and from BC Hydro underlines their commitment to help business thrive in British Columbia and their commitment to energy conservation and green energy generation.”