Canfor Fuel Switch Projects 2016 Public Sector Climate Action Leadership Symposium

Transcription

1 Canfor Fuel Switch Projects 2016 Public Sector Climate Action Leadership Symposium Michael Jordan Director Environment, Energy and Climate Change Policy Canfor Vancouver November 21, 2016

2 Our Company BC - based integrated forest products company Origins late 1930 s with Pacific Veneer in New Westminster Now 10 Sawmills BC, 1 Alta, 12 SE US; majority owner of Canfor Pulp with 3 Kraft Pulp mills in Prince George;1 BC TMP mill Taylor BC; With recent purchase of Anthony Forest Products we own a glulam beam facility in the SE US and are joint owner of an I-Joist facility in Ontario We are a major producer of sustainable forest products Products include SPF dimensional lumber, pulp and paper, and beams Also a leading producer of green energy including heat and power, and wood pellets Visit

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5 Growing Forests Absorb Carbon Dioxide and Release Oxygen

6 Wood Residuals are ~1/5 of the Raw Log Product Yields on a Solid Wood Basis Bark 5% Chips 30% Sawdust 7% Solid wood 90% Planer Shavings 7% Finished Lumber 47% Trim Ends 4%

7 BC Beehive Burners and Incinerators ~2005

8 Canfor Historical Beehive Burners and Incinerators British Columbia Ft. Nelson Alberta Hines Creek Peace River Ft. St. John Taylor Wanham Chetwynd Sawmills Mackenzie Grande Prairie Pulp Mills Tier 1 Burners Smithers Ft. St. James Polar Major Communities Houston Isle Pierre Prince George Netherlands Highways Plateau Clear Lake Rustad Valemount

9 Beehive Burner at Night

10 Canfor Houston Beehive Burner Meets its End (May 2007)

11 Beehive Burner - Malakwa

12 Renewable Energy Heat All but our recently acquired Wynndel mill in the East Kootenays are heat energy self sufficient Seven of 10 biomass heat energy systems at our BC mills are units constructed by Prince George based Deltech Manufacturing Inc.

13 Renewable Energy Combined Heat and Power We own and operate a 25 MW capacity Combined Heat and Power Plant in Alberta that supplies our adjacent sawmill with renewable electricity and steam heat for lumber drying in addition to selling renewable electricity to the Alberta Power Pool

14 Renewable Energy Wood Pellets We started up two wood pellet plants early this year, one in Fort St. John with a capacity of 70,000 t/year of pellets and the other in Chetwynd with a capacity of 110,000 t/year Pellets from these plants are bound for Asian markets where they are co-blended with coal to meet renewable portfolio standards and reduce greenhouse gas emissions Our 220,000 t/yr pellet plant joint venture with Pinnacle Pellet in Houston BC which started up in fall 2006 sells wood pellets to a Japan utility and coal power plants in Europe

15 Renewable Energy Chetwynd Pellet ORC The Chetwynd Pellet Plant has two bark fired Deltech heat energy systems which supply thermal oil to a Turboden Organic Rankin Cycle generator which generates up to 3MW of electricity displacing the pellet plant load and some of the sawmill electrical load Waste heat from the ORC generator is used to dry sawdust for the pellet plant in a low emission belt dryer

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17 Canfor Fuel Switch Offset Project Locations Fort St. John Chetwynd Prince George Sawmills / Plants Pulp Mills / Innovation Green Energy Head office Five of our ten BC sawmills are selling offset credits to the CIB Mackenzie Elko

18 Fort St. John Sawmill Heat Energy System

19 Schematic Fuel Storage Bin to Energy System Units

20 Biomass Fuel in Storage Bin

21 Operator Control Screen Ft. St. John Energy System

22 Efficient Combustion in Stepped Grate Combustor

23 Thermal Oil Heat Transfer to Lumber Dry Kilns

24 Fort St. John Offset Project PID Agreement

25 Fort St. John Offset Project Project Plan Validation

26 Fort St. John Offset Project Quantification

27 Fort St. John Offset Project Verification

28 Fort St. John Offset Project Transfer of Offsets

29 Canfor Carbon Offset Sales in BC Capital Cost Reductions to end 2015 Project Start millions $ tco 2 e Ft St John May ,345 Mackenzie May ,021 Prince George Feb ,894 Chetwynd Oct ,368 Elko May ,776 Total ,404

30 Canfor Carbon Offset Sales Going Forward Canfor Offset Projects Estimated Minimum Maximum Reductions Volume Volume to end 2017 tco 2 e tco 2 e tco 2 e Contract Vintage ,000 67, ,000 67,000 Total 94, , ,000

31 Conclusion We appreciate the opportunity to sell carbon offsets from several of our fuel switch projects to the BC Government Offset Revenue was taken into account in our decision to undertake these projects and together with carbon tax elimination was significant in the ROR on these projects We are looking at further innovative GHG reduction projects within Canfor and Canfor Pulp and are excited about the potential opportunity to contribute further to the low carbon economy QUESTIONS?