Canfor Pulp expects to receive federal government sign-off within days for an $107-million upgrade of its Northwood pulp mill recovery boiler, which is eligible for funding under an $1-billion Conservative government subsidy program.
The project - which is expected to significantly reduce odours and fine particulate air pollutants -
has already been approved by Canfor Pulp's board of directors, analysts were told during a discussion of the company's third-quarter $54.5 million profit.
The Northwood project has also passed its environmental assessment, said Terry Hodgins, Canfor Pulp's chief financial officer.
"We have not formally got that approval (sign-off from the federal government), but we don't anticipate any issues in getting it," said Hodgins, in response to a question from an analyst on Tuesday. "Within the next few days," added Robinson of when he expected the sign-off.
The company has already undertaken preliminary work on the Northwood recovery boiler upgrade, and is getting set up to start the majority of the work in the third quarter of 2011.
The company anticipates no problems in completing the work by March 31, 2012 when the federal government subsidy program is supposed to be complete.
The Conservative government announced the $1-billion subsidy program in 2009 to offset a massive American subsidy program. Canadian pulp mills had to use funding to reduce their environmental impact or reduce energy use. As part of the Canadian program, Canfor Pulp was eligible for $122 million in funding.
