PORT ANGELES — Nippon Paper Industries USA plans a $71 million “green energy” co-generation plant for its Port Angeles mill.
The project includes a new state-of-the-art steam boiler and a turbine generator which will make the company more efficient, reduce air pollution and produce 20 megawatts of energy from forestry biomass — residue from local timber operations — that will be sold to power companies.
It is also expected to create more than 20 jobs in the forestry industry.
The project was announced today (Friday) by Harold Norlund, NPIUSA’s Port Angeles mill manager, after it was approved by the board of directors of Nippon Paper Group, NPIUSA’s parent company in Tokyo, Japan.
“Today we announce the investment of $71 million in our community,” Norlund said in a statement.
“The co-generation of steam and electricity from this project will take our business to a new and more sustainable level and allow us to continue to improve our paper making business.
“This project will create over 20 new jobs in our community through the harvesting of forest residual biomass that would otherwise be left in the woods or burned in slash piles.
“Our forest residual supply partners will be able to meet the additional supply through innovation and expansion of their existing businesses.
“This will benefit not only our business but also those of the surrounding community.”
In addition to the forestry jobs, Norlund said, “the project will result in design and construction jobs in foundation, boiler and building construction at the Port Angeles mill.”
The 200-employee Port Angeles mill, which makes paper used for telephone books, other custom paper and newsprint, expects to begin construction on the project later this year, after necessary environmental studies have been done and state and local permits have been approved.
The new boiler is expected to be ready for testing in the second quarter of 2012.
A portion of the $71 million investment is expected to be reimbursed to the company through federal grants, Norlund told the Peninsula Daily News.
He said he expects a full payback of the investment “over a reasonable amount of time” through more efficient, cost-effective operations and the sale of the biomass-fueled “green” electricity to power companies.
The NPIUSA statement noted:
“[The new] plant is capable of being powered by 100 percent biomass.
“This will be a combined heat and power (CHP) project which is the sequential production of two forms of useful energy from a single fuel source.
“The steam will spin the turbine‐generator and the thermal energy will be used for paper production.
“Earlier this year, Nippon Paper Industries USA (NPIUSA) was selected by state Commissioner of Public Lands Peter Goldmark and the Washington State Department of Natural Resources (DNR) as one of four Forest Biomass Initiative partners to utilize forest residuals from state lands for green energy projects on a pilot basis.
“Rep. Kevin Van De Wege, D-Sequim, was a key sponsor of HB-2481 passed by the legislature this last session.
“The bill allows the DNR to study the capabilities of Washington’s forests to supply forest slash and other forest biomass for renewable energy projects and to partner on forest biomass for demonstration projects.
“The DNR’s initiative will develop the state’s ability to support bioenergy and biofuel projects with forest resources.”
The statement added:
“The mill’s original main boiler was built in the 1950s and is fueled by oil and biomass.
“The new boiler will produce more steam than the previous one, enough to supply the paper mill and a 20MW turbine generator.
“The power produced by this boiler will be sold as renewable energy that meets the requirements of the renewable energy portfolio standards passed in many states, including I-937 passed by Washington voters.
“Since 2000, NPIUSA has steadily reduced its dependence upon fossil fuels, and resultant carbon emissions per ton of paper, by 88 percent.
“The new co-generation (CHP) project allows further reductions of fossil fuels responsible for greenhouse gas emissions and also results in improved air quality because of the newest emission control technologies.”
In an interview with the Peninsula Daily News, Norlund said the new boiler will result in a 19 percent overall net reduction of pollutants from the company’s paper-making process, with significant decline in major pollutants such as carbon monoxide, particulate matter and sulfur dioxide.
The Port Angeles mill has been in existence — owned by different companies — since 1920.
Nippon acquired the mill from another Japanese company, Daishowa, when it bought Daishowa in 2003.
Here is a link to the NPIUSA statement today: http://issuu.com/peninsuladailynews/docs/final_press_release_npi_usa_08062010_pdf?mode=embed&layout=http%3A%2F%2Fskin.issuu.com%2Fv%2Flight%2Flayout.xml&showFlipBtn=true
