Nanaimo FP to sell bioenergy to BC Hydro

Under its Integrated Power Offer, BC
Hydro has signed a 15-year electricity purchase agreement with Nanaimo
Forest Products Ltd. to purchase clean energy from a new 25 megawatt
turbo-generation unit that is being constructed at the Harmac Pacific
pulp mill located just south of Nanaimo, B.C.

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.”