Black liquor gold rush coming to an end?

By Mark Rushton, Editor, Pulp & Paper International Magazine, RISI

LONDON, Nov. 16, 2009 (RISI) - Sadly - for pulp and paper makers in the US at least - it looks like the recent government funding of tax credits in relation to the use of black liquor is coming to an end, bang on time. And there's worse, hopes for the emergence of the so called "Black Liquor II" are beginning to fizzle out.

According to industry sources, there are only a few weeks now remaining for the federal funding to run out. Also, it seems that pulp, black Liquor and lumber have been specifically excluded from the latest "green ton credit" set up under the Biomass Crop Assistance Program (BCAP) unless, that is, pulp and paper companies own their own timber resources

Meanwhile one company, Verso Paper, has taken advantage of the windfall by reducing its net debt by US$175 million over the last two quarters, and will reduce it by a further $72 million in the fourth quarter. This comes on the back of more good news as the company reported a 46% increase in coated paper volumes.

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For further reading on the black liquor tax credit and related subjects, click on the links below:

Black liquor tax credit update: the debate keeps on burning

Tax Credit for ""Black Liquor"" Targeted in House Health Bill

"Black Liquor" Tax Credit Restriction Rides on Health Care Bill

House seeks to end biofuels paper tax breaks

Kirkpatrick Continues Work To Close Black Liquor Tax Credit Loophole

An elixir for health reform? Lawmakers offer "black liquor."

Provision in House bill could hurt paper industry