Pulpwood Company now entering the Electricity Surplus Grid Market.
All photos are actual photos of Mercer International and their Properties.
Here is a video of the Company and where it is going! Great Clip!!!
Mercer's Core Purpose: Provider of fibers, renewable energy and chemicals, from sustainable sources, for essential human needs.
Mercer is one of the world's largest producers of NBSK market pulp, by capacity. Producing approximately 1.43 ADMT annually between our three mills, Mercer serves customers in Asia, Europe and, North America. With some of the most modern facilities in the world, Mercer's mills in Canada and Germany have established a reputation for superior product, consistent quality and outstanding service. Our modern facilities mean low capital requirements, high efficiency, state-of-the-art environmental compliance and net energy producers.
In addition to our core business of market pulp production, we produce significant quantities of renewable electricity, generating over 1,401,000 MWh of electricity in 2007. We announced in 2008 that we intend to focus further on energy production and sales through an energy project at our Celgar mill in British Columbia, Canada. The Green Energy Project is a newly-approved approximately C$55 million investment in the mill's power production capacity. When completed, the project is expected to permit Celgar to meet all of its energy requirements and allow any excess electricity to be sold to power utilities, resulting in zero net energy costs for Celgar and significant by-product electricity revenue. In October 2009, a new 48 MW turbine is scheduled to arrive on site, and once installed and running parallel to Celgar's existing 52 MW turbine, is expected to result initially in export of up to 30 MW of surplus electricity in the summer and up to 25 MW in the winter. The mill already produces up to 7 MW of electricity for sale on any given day. This surplus energy is a by-product of pulp production, and the mill needs to run at full capacity to produce enough power for export. About 45 per cent of the wood fed into the mill becomes kraft pulp. The remaining 55 per cent of the wood is converted to a biofuel known as black liquor, and is burned in our modern high pressure recovery boiler to make power. More specifically, lignin and hemi-cellulose are extracted from wood fiber, which becomes a source of fuel in boilers to make steam which in turn makes power. As a renewable resource, wood is considered carbon neutral and energy produced from wood is therefore labeled 'green' as opposed to the 'brown' energy produced from non-renewable coal, for example. The Celgar energy project is designed to increase production of green energy and optimize its power generation capacity.
Mercer's overall strategy is to focus on assets that provide efficient utilization of the wood fiber and maximize energy recovery.
We endeavour to create shareholder value by focusing on the expansion of our asset and earnings base. Key strategies include:
- Focusing on NBSK Market Pulp: This product is considered premium grade and demands the highest price relative to other kraft pulps.
- Operating Modern, World-class Mills: We strive to keep operating costs as low as possible and to operate profitably in all market conditions. Our modern production facilities provide us with the best platform to be an efficient, low-cost producer of high-quality NBSK pulp without the need for significant sustaining capital.
- Improving Efficiency and Reducing Operating Costs: We continually focus on increasing productivity and efficiency through cost reduction initiatives and targeted capital investments. We endeavor to make high return capital investments that increase production and efficiency, reduce costs and improve product quality. At our German mills, some of these capital investments qualify for government grants and some offset wastewater fees that would otherwise be payable. We also seek to reduce operating costs by better managing certain operating activities such as fiber procurement, sales and marketing and customer service. We coordinate these activities at our mills to realize on potential synergies among them.
- Maximizing Energy Realizations: In 2007, our mills generated over 430,000 megawatt hours of surplus energy, primarily from a renewable carbon-neutral source. We are pursuing several initiatives to increase our overall energy generation and the amount of and price for our surplus power sales. Such initiatives include targeted high return capital projects to increase generation and connectivity to the electric grid. They also include working with stakeholders to have our surplus energy recognized as "green" energy and enhancing the supply of wood residuals.
- Pursuing Growth: We pursue growth through organic growth and acquisitions primarily in Europe and North America. We pursue organic growth through active management and targeted capital expenditures designed to produce a high return by increasing production, reducing costs and improving quality. We seek to acquire interests in companies and assets in the pulp industry and related businesses where we can leverage our experience and expertise in adding value through a focused management approach and our global production, maintenance, procurement and sales expertise. We view these types of acquisitions, which can occur at significant discounts to replacement costs, as having the ability to generate strong value.