Tembec co-gen project to power expansion
October 12, 2011
By Scott Jamieson
Oct 12, 2011, New York - At the Imperial Capital investor conference last week, Tembec CEO James Lopez reviewed green energy investments, including a pending co-gen project that may fuel future expansion.
Green energy investments at Tembec include a $25-million biogas project in Matane, QC; the $190-million waste liquor co-gen project in Temiscaming that will add some 40 MW of power; and a $13-million hog boiler optimization plan in Skookumchuck, BC to add 7 MW. The Temiscaming co-gen project comes with a projected four-year payback and includes a Green Purchase Power agreement with Hydro Quebec for 50 Megawatts.
In addition to replacing some aging equipment requiring $20 million in upgrades, the Temiscaming co-gen project will also right size the boiler for a possible 30,000 tonne per year expansion at the facility's dissolving pulp plant. That $100-million expansion project is still under study, but would be funded in part from cash flow generated from the co-gen project, an estimated $42 million EBITDA boost.
Overall the company has $519 million earmarked for capital spending in the coming few years, with $321 of that to be on fast payback green energy projects using proven technology. The investor presentation can be found here.
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