Tembec has announced a $190-million capital investment to upgrade its specialty cellulose manufacturing facility at Temiscaming, Quebec. The investment will increase annual production of green electricity by up to 40 megawatts, reduce sulfur dioxide emissions by 70%, increase Temiscaming's annual production capacity of specialty cellulose by 5,000 metric tonnes, and make Temiscaming one of the world's lowest-cost specialty cellulose manufacturing facilities, the company said in a statement.
According to Tembec, the project is the first phase of a two-phase investment plan for the facility. It will involve the replacement of three old boilers with a new high-pressure boiler designed to burn waste sulfite liquor, a co-product of the specialty cellulose manufacturing process, producing green steam for use at the facility.The project also calls for the installation of a new electricity turbine that will be driven by this steam. The turbine will increase the Temiscaming facility's green electricity production capacity from its current 10 megawatts to, eventually, 60 megawatts.
The boiler is scheduled to start up in December 2013, followed by the turbine, in May 2014.
Once the new equipment is in operation, Tembec expects a four-year return on investment, through new revenues from green electricity, the additional production of 5,000 metric tonnes of specialty cellulose and lower costs.
