ABERCROMBIE POINT - Officials at the Northern Pulp mill learned yesterday that the mill is eligible to receive roughly $28 million in federal funding, which officials hope to put towards environmental performance and efficiency.
CEO Wayne Gosse said it's too early to say exactly how the funding would be used. The mill is eligible for the cash through the federal government's Canadian Pulp and Paper Green Transformation Program. It can access the funding until March of 2012.
"We want to take the time that's appropriate to bring forward the projects that will have the greatest impact on the mill's viability," Gosse said.
National Defence Minister and Central Nova MP Peter MacKay was at the mill to make the announcement to a small crowd of employees, followed by a tour of the mill, which was in a start-up phase yesterday.
"This major investment by the government of Canada in Northern Pulp is proof that we are taking action to support the pulp and paper industry."
The available funding comes at a time when the Canadian forest products industry faces increased pressure from U.S. competitors, which receive subsidies for producing black-liquor. Black liquor is a byproduct of the kraft milling process.
The current black-liquor subsidy program in the U.S. is set to expire in December, however, new U.S. legislation - namely the Biomass Crop Assistance Program - may enable the subsidies to continue.
The federal funding program, which led to yesterday's announcement, allows eligible companies to receive a 0.16 cent credit for every litre of black liquor produced and then consumed as biofuel.
The U.S. subsidy has become a cash-cow in the United States and Gosse estimates it is worth $5 to $8 billion. The Green Transformation Program, he said, does put the Northern Pulp mill back on an even keel.
"Certainly it's going to allow us to get back on an even playing field to some extent, absolutely."
MILL GETS $28M
MILL GETS $28M
- Published on October 16th, 2009
- Published on December 29th, 2009
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Sean Kelly
Federal funding available through 2012
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Comments
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- Pictou Resident
- - January 18th, 2010 at 13:37:39
I'd really like to know what it is we're breathing when that pollution cloud lands on our town every time the wind blows this way. Is there any way a sample of the population of the town could voluntarily have their blood tested for toxins, so we could find out?
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- miles
- - January 18th, 2010 at 13:23:22
Dimethyl ether is one of those fuels that is not well known to the general public but it will be , if for no other reason than it promises up to 95 percent carbon neutrality. It's a clean-burning gas that can be sourced from renewable materials.... wood fibre .. Volvo is making use of this black liquor, an energy-rich, highly viscous by-product of the paper pulp industry. The Volvo project will be tested in Sweden between 2010 and 2012 at four oil company Preem stations. Four tons of bio-DME per day will be made at the Smurfit Kappa Kraftliner pulp plant. DME takes the liquid form at just 5 bar pressure, so it can be used in place of liquid petroleum gas , ( not liquid natural gas) . Potential uses are open to research. Research , Research, Research
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- jack
- - January 18th, 2010 at 13:15:10
Here's the story all..
kimberley clark sold the mill to themselves, and called it neenah paper. Then Neenah paper sold all our woodlands, which was given to scott for a dollar a hecter in the 60;s. Now that was almost a millin hecters of land which Neenah turned around and sold for hundreds of millions of dollars and bought a couple more mills. None of theprofits were for the mill. then Neenah sold the mill to the new company Northern Pulp. Northern Pulp owns just one mill, ours in pictou county. Everyone called the politicians to stop the sale of the woodlands and they said there was nothing they can do.
Now, the US mills have a bigtime subsidy that, compared to what that mills got, is like a drop of rain in the pictou harbor. We have to be competitve. And don;t cry becuase the gov't finally helped out the mill. Look at all the money Michelin got through the years,, hundreds of millions, while yes in the last year the mill got 42 million, but what did they get before that,, not too much.
If anyone is to blame, lets go back to mulruney era when he pushed free trade. We have no other option if we want to compete,, well I guess there is one, like most of you people want. close the mill down, and see an exodus of trades people,, family friends all leave the county/province to make a half decent wage. -
- JG
- - January 18th, 2010 at 13:12:43
Disgusted Resident this has nothing with job creation, it has everything to do with saving jobs so that many families in PC do not need to resort to unemployment. Just a couple of months ago Neenah Paper sold the mill to Northern Pulp because there were so many problems with the mill it was not turning a profit. Northern Pulp originally wanted to slowly close it down by selling off all of it's assets and offering a select few of their employees an early retirement with a HUGE cut to their pension if they were lucky enough to get one at all. With a few breaks Northern Pulp was able to make the needed repairs without losing too many of their employees. This money is not just a grand give away where they pocket it and run away, there is so much more to this then people think. Do you have any idea how many families would be affected by this mill closing?? This grant is going to save the mill and many families.
And Holding Noses Stop boo hooing about the pollution, look into the pulp and paper industry and you will see that this mill is much cleaner and green then the average pulp mill. This mill has been in Pictou for a very long time, if you are worried about toxic air move somewheres else! Chances are the mill was there long before you came to Pictou. If the pollution bothers you so much there are other places in Pictou you can live that are not Toxic . -
- Disgusted
- - January 18th, 2010 at 13:05:34
And How many Jobs is this 28 million dollors going to create ahh let me see 0 I say again 0 jobs for Pictou County they will be temporary jops for upgrades to the mill and they will be out of town workers brought and shipping the money back home to their family Not spending it here. 28 million could create quite a few jobs if you ask me. The company I work for has been clawing there way up just to keep there doors open and keep me and others employed because of this so called recession. I dont see any political party doing anything to help small busines owners. If you ask me it is the same old thing there filling there pockets and we pay for it.... Go figure.. Where is this change they all talked about when they were asking to be elected... :(
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- Faraway
- - January 18th, 2010 at 13:04:19
They cut down all the trees polute our water and air and sell us back finished products at high prices and we give them money, now you know what it is to be Canadian.
Peter time to spend some money to create jobs not give money to another American firm. remember the buy American plan in the States. peter we live in Canada by the way. -
- Miles
- - January 18th, 2010 at 12:51:26
Research is the key...there is much pure lignin research technology to do and we aren't even close to the europeans on this. They are using commercial grade cellulose, pure lignin and sugars, hemicellulose. They use chemicals and low-pressure steam that emits virtually no pollution. The process can utilize any vegetation as its source including waste-wood, Pine beetle-killed trees, corn waste etc. Lignin has many uses ( 100% biodegradable plastics) and is a widely used commodity that is in high demand. Wouldn't it be nice to have your pulp mill sending electricity to the grid, and creating non polluting biodegradable plastic?
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- JRT
- - January 18th, 2010 at 12:44:27
As I read the comments section, I was waiting for someone to say it, and sure enough, they did. ... the rancid smell, according to some, is the smell of money . The first time I heard this comment was a number of years ago when a person complained about the smell of the mill. Sadly, the people in this situation who gave this it's the smell-of-money reply are now deceased -- both died of cancer. In some way related to the mill? I wonder. We will never know.
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- Concerned For
- - January 18th, 2010 at 12:34:40
Forest destruction and pollution.....the Mill is not responsible for it all. Blanket statements such as that are hard to prove.
Also JD....you tell me what else will support local residents and business....other than the money mentality. If you have some suggestions,I would like to hear them.
The smell at times can be quite strong from the Mill, I agree.
The ash from the NS Power is another issue. What about The Metal Works.....welcome to living near industry.
While I am sure we would all like to live in a green space, a quiet place, a place where there is no crime or any other such issues, that is not a reality these days. That sounds like something for the fantasy creators of Disney to make. -
- Concerned
- - January 18th, 2010 at 12:34:17
I am anxiously awaiting the announcements of the capital/improvement projects. With Trenton Works gone.....jobs gone....never to return, we can't afford economically to lose the Mill as a local employer.
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- Holding
- - January 18th, 2010 at 12:33:39
Great. Really - I'm all for maintaining jobs, but they've come at a price. Let's hope the environmental performance includes pollution abatement for land, sea and air that have been ravaged by this industry for so many years.
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- bill
- - January 18th, 2010 at 12:24:47
There seems to be a discussion going on about whether we should be more interested in money OR health in Pictou. I say our health trumps money every time. Old pulp mills around the world (including Northern) generally do not operate in healthy environments. They adversely affect land, sea and air. If, and this is a big if, Northern Pulp can use this government grant and some of their profits to cleanup & modernize the plant then maybe this government handout will turn out to be a good thing.Also, I hope that the recent government funding comes with restrictions about how much cash can be paid to shareholders.
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- Disgusted
- - January 18th, 2010 at 12:23:49
JG From NB it just goes too show how much you really know. The company I work submits po's to the mill daily. The name may have changed but the mill is still owned by the exact same people it was sold (on paper) purely to please the banks. Nothing there has changed...
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- JG
- - January 18th, 2010 at 12:04:46
Yes, you are absolutley correct Jack Meoff, without this mill, Picou County would be losing many jobs! Peter MacKay was doing this for 2 reasons to keep up the green aspect, and to keep jobs in tact in this county. Whether this company is from the US or not should not matter!
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- Holding Noses in Pictou
- - January 18th, 2010 at 12:03:22
Oh joy & rapture! More years of breathing toxic chemicals - I can hardly wait. More years of some of the highest taxes in NS because nobody wants to buy or build in Pictou. Can't wait for the rain this weekend, so the toxic fog blanket can descend on Pictou once again. You can't imagine how I wish that darn place would close!
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- bill
- - January 18th, 2010 at 11:55:27
Ok Jack Meoff ; if what you're writing is true, we in Pictou should see that horrific smoke that,for example prevents my asmatic grand daughter from visiting Pictou, disappear. This is a good thing!!!! I hope you're not lying Jack for the sake of your job.
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- JD
- - January 18th, 2010 at 11:55:20
I think we DO know already. This area has the highest cancer, asthma and lung problems rates in NS - an awfully high price to pay for jobs for some - with all the forest destruction and life-threatening pollution - is it really worth it? Or is it the only thing that counts is money mentality?
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- Disgusted
- - January 18th, 2010 at 11:50:45
Cash to shareholders I think not cleanup your !@#$%^& mess first and foremost then create some jobs and then maybe the goverment if there smart about it would be willing to do something in that regard. If the mil isnt making money than it should not be in business after all that is the whole premise of doing business in the first place if the shareholders are whining about profit than maybe they should invested wisely. As the saying goes respect is earned not given...
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- JG
- - January 18th, 2010 at 11:36:25
WOW, Disgusted Resident being an employee of an entirely different company that sends purchase orders to Northern Pulp you must know everything about the sale of this company. Of course everything is the same on the PO the company didn't move, the terms remain the same, their accounting office remains in the mill, they do not write the business owner's name on PO's, the only thing that would have changed is the company name. So I'm really not to sure what a purchase order is gonna tell you about a sale of a pulp mill.
