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Celgar
Celgar  Latest News

09-Jun-2013 July 9 Press Release
01-Jan-2010 Green Energy Project Funding

Zellstoff Celgar mill (ZCL) is situated near Castlegar in British Columbia, Canada, approximately 600 kilometers east of the port city of Vancouver, and produces approximately 520,000 ADMTs annually.

It is one of the largest and most modern single line kraft pulp mills in North America. The mill is well-situated with respect to fiber supply and the growing Asian and North American markets. Celgar is a modern, efficient ISO 9001 certified NBSK pulp mill.

In 1993, a C$850 million rebuild and modernization transformed Celgar into a high-quality, continuous process pulp mill with modern power generation and environmental treatment facilities. When Mercer completed the US$210 million acquisition of Celgar in February 2005, the mill had an annual production capacity of about 430,000 ADMTs.

The completion of "Project Blue Goose" at Celgar was a highlight for Mercer in 2007 - a milestone in Mercer's North American expansion. A diverse but integrated capital project, this C$28 million project was designed to achieve operation efficiencies, increase production and improve environmental stewardship, including reduced consumption of energy and chemicals. Upon completion of the project in 2007, the mill's annual production capacity increased to approximately 500,000 ADMTs. Additional process efficiencies have further increased annual production capacity to 520,000 ADMTs. Celgar also became a net exporter of electricity with the potential to fulfill a growing demand for “green” energy.

As part of our continued focus on energy production and sales and to increase the mill’s production of “green” energy and optimize its power generation capacity, in 2010 Celgar completed its Green Energy Project. The C$64.9 million project included the installation of a second turbine-generator set with a design capacity of 48 MW to increase the mill’s installed generating capacity to 100 MW, and upgraded the mill’s bark boiler and steam facilities.

In connection with the Green Energy Project, Celgar finalized a 10-year Electricity Purchase Agreement with BC Hydro, a local utility, under which it will sell electrical energy at “green’ rates.

In October 2009, as part of their Green Transformation Program, the Canadian government, through Natural Resources Canada, agreed to provide approximately $57.7 million of funding to Celgar for projects designed to meet certain energy efficiency or environmental improvement requirements. The Green Energy Project will benefit from $46.8 million of this funding and the balance will be used for the funding of other eligible high return projects.