CANADA (From news reports) -- Kruger has revealed the details of its planned $700 million investment in Corner Brook Pulp and Paper Limited, and it's a big plan that involves a change in the way the mill makes paper and how it generates energy.
Project Tuckamore is "a generational change," and one that involves a major revitalization and investment in operations, Pelley said.
Why is Kruger making changes?
"A number of them did not have the longevity that we were pursuing," said Pelley.
That caused Kruger to step back and look at the advantages it already has here, including a skilled workforce, sustainable wood supply, an excellent product and renewable energy production.
"This project is really about transforming ourselves to really take advantage of these natural strengths that we have and leveraging them for a long-term future," said Pelley.
There are four parts to the project -- forestry modernization, the mill site, a wind farm and hydro generation -- and Pelley said all four are essential and work together.
"Take one away, it doesn't work," he said.
How will they modernize forest operations?
Kruger plans to modernize harvesting, and to do so, its woodlands division will completely change its focus.
The forestry operation will see expanded employment in the sector, new equipment and a new contractor configuration.
Kruger has harvested for decades with a priority to feed the mill, but that will change, and woodlands operations will focus strictly on supplying the sawmill sector to increase lumber production.
The company will harvest trees in longer lengths, prioritizing the specifications that the sawmills need.
It will generate more employment in the sawmill sector and see sawlog production increase from 155,000 to 515,000 cubic metres annually.
Kruger will also double its silviculture program.
What changes are coming to the mill site?
Acting on its commitment to have the Corner Brook mill operate long-term, the company will start making paper from residuals from the sawmills.
That means it will produce newsprint using wood chips.
Pelley said it's an innovative approach that allows the mill to adapt and will require new equipment and new processes.
There will no longer be wood piled in the mill yard; instead, it will be chips with up to 14 days of capacity available at all times.
The mill will also go from two paper machines to one, with the #7 paper machine being the only one used to make paper.
What role will wind energy play?
Corner Brook Pulp and Paper will become the first mill globally to produce paper from wind energy.
To do that, the company will construct a wind farm to supply the mill and enable it to increase its pulping capacity for making paper.
The wind farm will generate 155 megawatts of power and consist of 17-22 wind turbines.
Those turbines will be located behind Massey Drive, 23 kilometres in towards Grand Lake.
The site was picked by the company because it is within Kruger's existing timber limits, has a road network, high wind resources and is out of sight and as far back as possible from nearby communities.
This part of the project will include a transmission line from the site that will meet the transmission line on the highway and come out to the Massey Drive terminal station, where it will connect with the power grid along with Deer Lake Power, Watson's Brook and the mill.
The energy piece of the project will also see Kruger invest in larger systems for handling the bark that is produced by the sawmills.
This residual needs to be consumed and cannot be stored.
Pelley said that when the forest operation is modernized, there will be more bark biomass available.
The company will add large biomass storage facilities and invest in a large drying facility using excess steam from the mill to dry the biomass.
The mill's cogeneration unit will use the biomass in its boiler to generate more firm (or guaranteed) power, allowing the company to eliminate oil.
That will also result in the removal of the tank farm on Mount Bernard Ave.
How will current hydro generation change?
By doing so, it will be able to produce more power capacity for the province's electrical grid.
Kruger plans to invest in technology in Deer Lake with upgrades to the plant and advanced controls.
The facility will control Deer Lake Power and manage the wind farm and the cogeneration facility at the Corner Brook mill.
The changes will result in more stable water levels, and Kruger plans to replace penstocks three and four on Main Dam.
It will also invest in the Humber Canal with earth berms throughout the entire canal network and at Main Dam.
What are the benefits?
- 575 full-time equivalent jobs will be created during construction and over $50 million in local economic impact
- 1,000 direct jobs projected, including 377 at Corner Brook Pulp and Paper
- The project sustains and supports the growth of provincial sawmills
- It generates the conditions to repay Kruger's existing loan to the Newfoundland government
- It will add reliable power capacity to support future economic growth
What does this mean for the mill's future?
"We're setting the mill up for decades of operation, but not just operation, for growth," said Pelley.
"We're really reinventing ourselves to be strong for future opportunities.
"This project is beyond a decade. This project is about 30 years, 40 years, 50 years. This is a much longer outlook than we've had in recent times."
Kruger is looking at having the project completed within four years.
Pelley said the company expects to register Project Tuckamore with the province for environmental assessment in the next few weeks.
That process is expected to continue through 2027, with community consultation occurring as part of it.
Project engineering will continue through this year and into 2027, while the NL Hydro feasibility and system impact studies will also be completed this year.
The NL government's final project agreement should come in 2027, and if all goes well, Kruger expects project approval at the end of August 2027.
Then the work will begin on the four parts of the project. Forestry modernization implementation and Deer Lake Power modernization are slated to be completed in 2029. The mill modernization and wind farm construction are anticipated to be completed in 2030.
As the project proceeds, Kruger has set up the Project Tuckamore Community Engagement Office in the Centre for Research and Innovation on Mill Road.
Pelley invited the public to drop by the office to learn more about the project. More information is also available on the project website.
