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Gold/Mining/Energy : Gasification Technologies

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From: Dennis Roth5/8/2006 1:32:31 PM
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Weyerhaeuser, Nexterra and Paprican Team Up to Tackle Skyrocketing Fuel Costs at Pulp Mills
prnewswire.com

Nexterra's gasifier to provide low-cost, biofuel alternative to natural gas

VANCOUVER, May 8 /PRNewswire/ - Nexterra Energy Corp. announced today
that it has signed an agreement with Weyerhaeuser's Kamloops Cellulose
Fiber mill and Paprican, the Pulp and Paper Research Institute of Canada,
to verify the application of Nexterra's innovative gasification technology
for pulp mill lime kilns.
Nexterra's gasifier enables mill operators to significantly reduce fuel
costs by converting boilers, kilns and dryers from natural gas to "syngas"
- a clean, low-cost biofuel produced by gasifying wood residue.
"Reducing our fuel costs is a strategic priority for Weyerhaeuser, so
we're excited to be working with Nexterra and Paprican on a potential
gasification solution for our lime kilns," said Bill Adams, Manufacturing
Services Manager at the Weyerhaeuser Kamloops Mill. "Over the past decade
we have significantly decreased our reliance on fossil fuels. Nexterra's
gasification technology shows tremendous potential as a clean,
cost-effective solution to lower energy costs in our kraft mills and move
us closer to energy self-sufficiency. This agreement allows us to take a
closer look at how the gasifier would perform in our mill before making a
decision to acquire the technology."
Adams said that the Nexterra gasifier system has the potential to
reduce greenhouse gas emissions at the Kamloops mill by 25,000 tonnes per
year. The 60 million Btu/hr gasification system would displace the
equivalent amount of natural gas needed to heat 4,000 residential homes.
North America's pulp and paper industry consumes 900 trillion Btu of
natural gas and fuel oil each year at a cost of US $8.0 billion. There are
150 kraft pulp mills in North America, each consuming millions of dollars
of natural gas or fuel oil in their lime kilns. Since the mid-1990s, the
cost of natural gas has increased by 500 per cent, leaving North America
with some of the highest natural gas prices in the world and placing severe
competitive pressures on North American forest companies.
"We are very pleased to be a partner in this project," said Mike
Towers, Senior Research Engineer at Paprican. "Rising energy costs continue
to be a major challenge for the pulp and paper industry, and lime kilns are
major consumers of fossil fuels. Developing alternative fuel systems, such
as Nexterra's gasification technology, is essential for the industry to
remain competitive. We are confident that this project will demonstrate an
attractive option for substituting fossil fuels in lime kilns and achieving
critical cost reductions."
"Firing lime kilns with syngas is a natural extension of our
gasification technology and represents a significant new market opportunity
for Nexterra," said Jonathan Rhone, Nexterra President and CEO. "We are
very pleased to collaborate with Weyerhaeuser and Paprican, both of whom
have well-established track records of innovation, as well as the
commitment and technical capabilities needed to make this project a
success."
About Weyerhaeuser Company - Weyerhaeuser Company, one of the world's
largest integrated forest products companies, was incorporated in 1900. In
2005, sales were $22.6 billion. It has offices or operations in 18
countries, with customers worldwide. Weyerhaeuser is principally engaged in
the growing and harvesting of timber; the manufacture, distribution and
sale of forest products; and real estate construction, development and
related activities. Additional information about Weyerhaeuser's businesses,
products and practices is available at: weyerhaeuser.com.
About Nexterra Energy Corp. - Nexterra Energy Corp. develops and
manufactures biomass gasification systems that convert solid fuels into
clean, low-cost heat and power. Nexterra systems enable customers who
self-generate energy, such as the forest industry and institutional users,
to produce energy using residual or waste fuels produced on-site. This
results in lower energy costs and less reliance on natural gas and
grid-purchased electricity. In April 2005, Tolko Industries Ltd. purchased
a multi-million dollar Nexterra gasification system for its plywood plant
near Kamloops. BC. In November 2005, Nexterra sold a system to US
multinational Johnson Controls Inc. as a key component in a $16 million
biomass cogeneration plant that JCI is supplying to the University of South
Carolina. For more information, go to: nexterra.ca.
About Paprican, the Pulp and Paper Research Institute of Canada -
Paprican is a leading not-for-profit research and technology institute that
provides valuable technology transfer and cost-competitive research
addressing both the short-term and strategic needs of its members. Its
research programs are driven by the high-priority technical issues of the
industry such as product quality and value, cost competitiveness,
environment and sustainability. Internationally recognized for excellence,
Paprican operates laboratories in Quebec and British Columbia, and is well
positioned to offer services to the global pulp and paper industry. For
more information, go to: paprican.ca.
For further information, please contact:

Nexterra Energy Corp.
Raymond McAllister
Director, Communications
Tel: (604) 637-2507
Email: rmcallister@nexterra.ca

Weyerhaeuser Company - Kamloops Mill
A Weyerhaeuser spokesperson will be available for media interviews.
Please contact Raymond McAllister (see above) for contact information.

Paprican:
Mike Towers
Senior Research Engineer
Tel: (250) 561-4410
Email: mtowers@paprican.ca

Anne-Josee Laquerre
Group Leader, Communications
Tel: (514) 630-4122
Email: alaquerre@paprican.ca

SOURCE Nexterra Energy Corp.
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