BC Hydro’s Power Smart incentive will make Weyerhaeuser’s pulp mill in Kamloops electrically self-sufficient and will conserve enough power to meet the electricity needs of 15,000 homes.Kamloops, British Columbia, Canada – January 16, 2003 [Solaraccess.com] BC Hydro’s contribution of CAN$18 million dollars will combine with CAN$16.8 million from Weyerhaeuser to fund the installation of a 30 MW hog fueled turbo-generator at its pulp mill. The project involves converting wood waste from sawmills and chipping facilities into electricity. This wood waste, known as hog fuel, will be burned in the steam plant’s existing and currently underutilized high-efficiency power boiler furnaces, and the steam will drive the turbo-generator. “There is currently an excess of hog fuel in the region which is going to waste,” said Rick Maksymetz, Kamloops Pulp Vice President and Mill Manager. “Now we’ll be turning that waste into electricity at a cost to both ourselves and BC Hydro that is better than each of our next best options.” “The 155 gigawatt hours we acquire will cost about 1.5 cents per kWh, which is significantly lower than our 5.5 cents/kWh price for acquiring new generation,” said Beverly Van Ruyven, Senior Vice-President of Distribution, BC Hydro. “Our investment also provides a benefit/cost ratio of greater than 3:1, so this project makes good business sense for Hydro.” “The turbo generator project will reduce our energy costs and allow us to make the significant leap to being energy self-sufficient,” said Bill Gaynor, President of Weyerhaeuser Company Limited. “Through this agreement, Weyerhaeuser guarantees its Kamloops Pulp Mill will produce an extra 155 gigawatt hours annually for 10 years. This is a win-win for our mill, the environment, BC Hydro and also for the community, which will benefit from the economic spin-offs of implementing a project of this scale.” The project will create approximately one year’s employment for up to 75 construction workers, as well as permanent trucking jobs for hauling the hog fuel to the mill. Through the elimination of up to five beehive burners at sawmills in the Thompson Okanagan region, this project will improve the overall air quality in the region. The turbo generator project will be greenhouse gas neutral, said the company. Construction of the turbo generator project will commence in March 2003 with completion by February 2004 and full operation in May 2004. The project will include installation of a 30 MW refurbished turbo generator (previously purchased by Weyerhaeuser), connection to the BC Hydro grid, expansion of hog fuel storage and handling systems and improvements to wet scrubber systems to improve the removal of particulate matter from the gas steam boilers. As part of the project, an improvement in the pulp mill’s scrubber system will result in no increase in particulate released from the power generation system following the startup of the new generator. The scrubber improvements are one of the steps Weyerhaeuser will take to meet a 50 percent reduction in the particulate permit by 2007.