Tembec, a manufacturer of forest products, has invested $190 million to improve its specialty cellulose production plant in Temiscaming, Québec, Canada.
The investment will enhance the generation of green energy by about 40 MW per year and boost the production capacity of cellulose by 5,000 metric tonnes per year. In addition, sulfur dioxide emissions will be minimized by 70%. The $190-million investment is the Phase 1 of a two-phase project.
The three old boilers in the facility will be replaced with a high-pressure boiler, which has been constructed to burn sulfite liquor waste and produce green steam. The sulfite liquor is a co-product resulting from the specialty cellulose production process. The Phase 1 also includes deployment of a new electricity turbine, which will increase the green electricity production capacity of the Temiscaming facility from 10 MW to 60 MW. The turbine will be powered by green steam produced by the high-pressure boiler. The boiler will commence operation in December 2013 and the turbine in May 2014. Under a 25-year agreement with Tembec, Hydro-Québec will purchase the additional green energy produced by the turbine.
James Lopez, Tembec's President and Chief Executive Officer, stated that the project will make the Temiscaming facility as one of the highly competitive mills in the pulp and paper market worldwide. The company anticipates a four-year return on investment (ROI) through an additional production of specialty cellulose, reduced operating costs and new revenues from green energy. Phase 2 of the Temiscaming facility’s upgrade project will increase green electricity production by 10 MW, enhance the specialty cellulose manufacturing capacity by 30,000 metric tonnes per year, and further decrease the operating costs.