Biomass and NSP

NS: NewPage, NS Power propose new biomass venture
By Staff, Transcontinental Media

Source: The Daily Business Buzz, April 5, 2010

[HALIFAX, NS] — Nova Scotia Power Inc. (NSPI) and NewPage Port Hawkesbury Corp. (NewPage) have announced agreements to develop a new 60 MW biomass co-generation facility.

The development entails an NSPI investment of $200 million. This includes $93 million in construction costs for new facilities, $80 million to purchase assets from NewPage, and other related costs. NewPage will be responsible for the construction and operation of the co-generation facility and be completely responsible for fuel supply. This project remains subject to regulatory approval from the Nova Scotia Utility and Review Board and is targeting an in-service date of late 2012.

NSPI says the proposed co-generation project represents another important step toward meeting Nova Scotia’s renewable energy commitments while at the same time creating and sustaining jobs in the province. This local biomass fueled co-generation facility could supply Nova Scotians with approximately 400 GWh annually, representing approximately three per cent of the province’s total electricity requirement.

The project is expected to create an estimated 150 new jobs in Northern Nova Scotia, primarily in the forestry sector, in addition to maintaining the Port Hawkesbury mill’s existing workforce of approximately 550 employees. Approximately 50 person-years of employment will also be created during the construction phase.

A request for proposals is being issued to solicit competing renewable projects that provide firm energy. The RFP process will test the competitiveness of this proposed project.

Only “stem wood” will be used in the project’s biomass energy generation. Tree stumps, tops and branches will not be removed from the forest floor as they are necessary in restoring nutrients in the soil so new trees can grow.

NewPage Port Hawkesbury has used biomass sustainably since the early 1980s, and is the only company in the world to achieve all three forest management certifications; Canadian Standards Association, Sustainable Forestry Initiative and Forest Stewardship Council.