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Pulp- and Paperindustry

Indonesian P&P industry up!

Vietnam P&P production up!

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Paper production increases 12%

(25-05-2009)

What drives the Paper Industry?

10th of May 2009: Has the North American paper industry gone completely bonkers this spring? (Not that it was ever a particularly sane industry).

Paper & Power - The new old business model

A rescue plan for Canada's forest industry

To say that times are tough in the Canadian forestry sector is a gross understatement. With the U.S. housing collapse and global financial services meltdown, the sector has lost 50,000 jobs and more than 250 mills over the past two years.

Graphic paper demand Europe down

US Black liquor subsidies worries sector

A federal program intended to promote the use of renewable fuels is instead encouraging U.S. paper companies to pursue some rather "un-green" practices, such as substituting virgin pulp for recycled pulp.

Vietnam to supply China and Japan with wood chips

Short on biomass?

EPCOR Power 's Williams Lake, BC facility has used cheap wood waste from the local mills for the last 15 years to generate power.

However, the 6 mills around Williams Lake have halted production, the power plant is now employing most of the logging truck drivers in the area to scouring the nearby roadsides for piles of logging waste to keep their thermal plant fed. However, the 6 mills around Williams Lake have halted production, the power plant is now employing most of the logging truck drivers in the area nearby to scouring the roadside for piles of logging waste to keep their thermal plant fed.

British Columbia's newly released action plan for forestry calls for more of the waste wood left behind after harvesting to be used for biofuel. British Columbia's newly released action plan for forestry calls for more of the waste wood left behind after harvesting to be used for biofuel.

Black liquor - P&P's redeemer?

Remember the other day when we heard that International Paper received $71.6 million from the IRS for burning an alternative fuel mix?

Well Domtar and AbitibiBowater want in too.

Domtar has retrofitted seven of its U.S. mills to produce the black liquor to qualify for the tax credit.

If approved, Domtar could see an estimated $225 million a year from the U.S. tax credit program.

The program was initially designed to encourage companies to add green energy like biodiesel to their fossil fuels to reduce America´s dependency of foreign energy.

For the forestry companies to qualify for the tax credit, they are actually adding diesel to the black liquor that they are already burning for steam generation. To qualify, at least 0.1% of taxable fuel such as diesel, gasoline or kerosene must be mixed with a qualified alternative fuel.

As a result of this tax credit, multi-national companies, like Domtar and AbitibiBowater, will likely increase production at their mills located in the U.S. at the detriment of their Canadian operations.

In addition to hurting the competitive position of Canadian producers, the incentive encourages producers to add even more pulp on the market even though an oversupply continues to deflate prices.

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by Dr. Radut