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Norske Skog Canada Limited Energy Efficiency and Emissions Reduction

May 16, 2006

Norsk Skog Canada Limited, a major paper producer, creates most of its GHG emissions through energy use. Accordingly, its GHG reduction programs go hand in hand with energy efficiency and increasing firm productivity.

Improving Productivity and Reducing GHG at the Mill Level

Since 1992, the company has spent roughly $400 million on improving mill efficiency; technology and efficiency improvements have also reduced GHG emissions. Some environmental improvements include the following:

  • All company mills now have ISO 14001 certified Environmental Management Systems in place.
  • Mills undergo internal and external compliance audits, and the results are reported to and addressed by the company’s management team.
  • Mills have also undertaken projects that increase biomass energy use
  • Mills have reduced overall energy demand, and reliance on fossil fuel and steam energy
  • Materials such as sawdust and waste wood — traditionally burned — are now used for paper and pulp production.

Management Tools

Norske Skog Canada has an internal management structure equipped to implement its GHG reduction and energy saving programs. The internal team includes:

  • Environmental Council, comprised of Environmental Managers
  • Environmental Manager at each site
  • Community Advisory Forums and local news inserts help inform the immediate community about practices.
  • SVP of Operations who oversees all operations, including environmental work

The firm also uses scorecards to evaluate performance. The scorecards — given monthly to each mill — are reviewed by the Corporate Energy Council. On a quarterly basis, executives from the company advise mills on their environmental performance. Other internal communication on these topics is facilitated through workgroup meetings, newsletters and the company intranet.

Working with Energy Suppliers

Norske Skog Canada is the single largest customer of BC Hydro, a major Canadian electrical utility. To decrease emissions related to purchased energy, Norsk Skog Canada partners with BC Hydro by being an active participant of BC’s Power Smart Program. The program uses financial incentives and the expertise of BC Hydro to help companies such as Norske Skog Canada identify and capitalize on internal power saving opportunities. Norske Skog Canada has received $2 million in benefits because of its energy conservation measures.

Product Transport

Norske Skog Canada is also examining ways in which it can reduce energy use and GHG emissions created by the transport of its products. The firm examines the emission impacts of moving goods transported by train, barge, freighter, and truck. When possible, the firm plans transportation so that instead of returning empty on return trips, containers are filled with materials needed by the mills.

Future Projects

In addition to improving and developing its ongoing initiatives, Norsk Skog Canada is currently researching how it might develop a carbon-neutral paper — a first in the paper industry.

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