Black liquor: Credit where it's due?

By Justin Toland, Contributing Editor, Pulp & Paper Internationnal Magazine

BRUSSELS, May 6, 2009 (RISI) - The current, highly-charged, debate about the US black liquor tax credit, and whether it should continue to be available to pulpmakers, raises once again the thorny issue of subsidies for the industry. While the members of the interactive CEO Panel that I chaired at the recent RISI European Pulp & Paper Outlook Conference 2009 in Berlin professed their opposition to tax breaks and other tools that could unfairly tilt the playing field in favour of one producer over another, it nonetheless remains the case that there are grants, subsidies and tax credits waiting to be grabbed by those with the knowledge and good fortune to get them.

Aside from writing about the pulp and paper industry, one of my other roles these days is providing communications for one of the many programs organized by the European Commission here in Brussels. The LIFE program, administered by the Commission's Directorate-General of the Environment, is a financial instrument supporting environmental and nature conservation projects throughout the European Union (EU). Since its inception in 1992, LIFE has co-financed some 2 750 projects to a total tune of approximately €1.35 billion ($1.8 billion).

This figure includes projects co-funded under the LIFE-Environment strand of the program, which was dedicated to co-financing pilot and demonstration projects in order to support the development of innovative techniques and methods. Pulp, paper, wood and forestry companies have been amongst the thousands of recipients of LIFE's largesse. Successful applicants for co-funding over the years have included Favini, whose seaweed and fruit residue papers (see PPI magazine, May 2005 and December 2008 issues) were initially developed with the support of the LIFE program, and Nordic Paper, whose integrated Seffle mill in Sweden was granted nearly €1.5 million (out of a total project cost of more than €6.5 million) to reduce discharge of the chelating agent EDTA in its effluent through multistage biological reduction, a project known as BIORED. (You can search for more examples from the industry by clicking this.

Whether or not you agree with the use of public funds for projects of this nature, it is a fact that the funds exist and, if your company is a potential recipient of said monies, it would be surely be remiss not to investigate the opportunity further. Therefore, if you are in the EU, you may like to know that applications for the next round of LIFE funding (dubbed LIFE+) can be submitted between May 15 and September 15. Further details and application forms can be found at this address. Good luck, and let the debate continue.