Ontario pulp and paper mills gain energy rebates from government

By James McLaren, Senior Editor, PPI Pulp & Paper Week, RISI

SAN FRANCISCO, Sept. 12, 2011 (RISI) - The Canadian federal government is offering energy rebates that will help several northern Ontario pulp and paper mills to reduce electricity costs.

Through the Northern Industrial Electricity Rate (NIER) program, the companies are receiving an energy rebate of two cents per kilowatt-hour (kWh) to help manage electricity costs and improve energy efficiency and sustainability, according to government press releases.

Ontario has provided $6.1 million to AbitibiBowater for energy efficiencies achieved in 2010-2011 at the company's Fort Frances and Iroquois Falls mills, and the company will be eligible for further rebates. The province said the funding helps keep the mills competitive and protect 859 jobs.

The province earlier announced an initial rebate for AbitibiBowater's Thunder Bay pulp and paper mill of over $7.5 million based on the facility's consumption for the 2010-2011 fiscal year.

Ontario has provided $2.1 million to Domtar for energy efficiencies achieved in 2010-2011 at its operations in Dryden and Espanola, and the company will be eligible for further rebates.

Ontario is also helping Tembec reduce energy costs, stay competitive and protect 550 jobs at its newsprint mill in Kapuskasing.

Averaging $150 million per year in assistance, the three-year NIER program is providing electricity rebates to large industries in Northern Ontario that prepare and implement comprehensive energy management plans.