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NLIS 2
October 19, 2000
(Mines and Energy)

 

Province proposing to buy power from Corner Brook Pulp and Paper Limited

Mines and Energy Minister Paul Dicks announced today that Newfoundland and Labrador Hydro has entered into a power purchase agreement in principle with Corner Brook Pulp and Paper Limited (CBP&P).

The minister was joined for the announcement by Forest Resources and Agrifoods Minister Kevin Aylward, President and CEO of Newfoundland and Labrador Hydro William Wells, and Kevin Sheahan, Vice President and General Manager of Corner Brook Pulp and Paper Limited.

Mr. Dicks said the proposal calls for development of a back pressure steam co-generation system.

"Financing for the project will be handled by the company," said Mr. Dicks. "Hydro will then enter into a power purchase agreement and buy the new power that will be generated.

The Corner Brook Pulp and Paper co-generation initiative has the potential to generate 15 megawatts of electricity.

The minister said development of this project will greatly assist Newfoundland and Labrador Hydro in its efforts to meet the island�s total energy requirements.

Earlier this year, the province gave approval to proceed with the Granite Canal hydroelectric project. This project, capable of providing 40 megawatts of additional energy, will ensure that the province has its required power to meet the electrical demands for the island interconnected System in 2003.

The minister said that this project has been deemed to be in the overall best interest of the province and will be exempted from the Electric Power Control Act and the Public Utilities Board Act.

"All future supply options are being considered in the government�s current energy policy review. There are several alternative sources of energy available. It is a matter of selecting the appropriate mix of projects to provide power in a way that is cost-effective, addresses environmental and technological concerns and at the same time meets the island�s overall energy needs," said Mr. Dicks. "The province must be prudent in considering investment in future supply options to meet both consumer and industrial energy requirements."

Mr. Sheahan said: "This project is a splendid example of cooperation between government and industry in the development of our provincial resources for the long term benefit of current and future generations."

Minister Aylward said: "Today�s agreement fulfills a commitment made by this government to adopt energy efficient technology including renewable forms of energy that are technically feasible and economically viable. This sends a positive message to hundreds of communities and mill employees throughout this province who depend on a viable forest industry for their economic well being."

BACKGROUNDER

Co-generation
Co-generation is a highly efficient means of generating heat and electric power at the same time from the same energy source. While displacing fossil fuel combustion with heat that would normally be wasted in the process of power generation, it can reach efficiencies that more than double the best conventional power generation. With this project, steam will be produced by burning mill waste and oil. The steam exhausted from the turbine will be used in mill functions.

Media contact: Gary Callahan (709) 729-4890 .

2000 10 19 3:40 p.m.


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