The Internal Revenue Service may have handed U.S. pulp and paper companies a multibillion-dollar gift by ruling that black liquor produced in 2009 is eligible for an even more lucrative tax credit than the one claimed by manufacturers last year.
The June 28 ruling contradicts previous guidance from the Environmental Protection Agency that the molasses-like pulp byproduct could not qualify for Cellulosic Biofuel Producer Credits (CBPC) because it is not a motor-vehicle fuel or fuel additive. The new IRS ruling does not allow the same black liquor to receive both the original black liquor credits ("alternative fuel mixture") and CBPCs, the so-called Son of Black Liquor tax credits.
The exact impact of the ruling is unclear, but in theory it is be worth more than $10 billion to U.S. companies.
Publicly traded U.S. companies received more than $6.5 billion in black liquor tax credits last year by exploiting a loophole in legislation designed to subsidize "green" fuels. Privately held companies probably qualified for at least another $2 billion.
Domtar and FPInnovations join forces to develop innovative fiber-based nanotechnologies
omtar Corporation and FPInnovations today announced that they have formed a new joint venture company to build the world's first one metric ton per day commercial-scale nanocrystalline cellulose demonstration plant at the Domtar Windsor, Quebec pulp and paper mill site. Construction will begin in the coming weeks and will take approximately 20 months to be completed.
Sappi combines Southern African paper and packaging businesses
JSE-listed Sappi announced on Thursday that its Southern African unit would consolidate its paper and paper packaging businesses to strengthen its ability to meet customer requirements and to develop new business opportunities.
Sappi Fine Paper South Africa and Sappi Kraft would merge to become Sappi Paper and Paper Packaging South Africa, with Sappi Southern Africa CEO Jan Labuschagne to assume direct responsibility for this new division.
Pine trunks rumble down conveyors and sawdust clouds the air. The noise inside the sawmill nearly deafens, but in this remote town of 3,500 people, some 700 kilometres north of Vancouver, there are few sounds as welcome as the buzz and clatter of a mill back at work.
European Parliament votes to cut illegal timber out of the EU market
The European Parliament has voted in favour of legislation banning illegally logged timber imports into the European Union. The new legislation bans illegally-harvested timber or timber products from being placed on the EU market. This will prevent such wood from effectively being laundered once it reaches the EU. Currently, at least 20% of timber and timber products reaching the EU market is estimated to come from illegal sources.
NZ forestry production and trade data for the March 2010 quarter is now available on the web. Details can be found at address below*. Key points - compared with the same quarter of the previous year (March 2009) are;
The Administration of Komi Republic and DOK Kalevala has recently signed a Protocol on cooperation in construction of a woodworking mill in Petrozavodsk. DOK kalevala is to become the first company in Russia that will produce different kinds of OSB.
