Pulp Chemicals
Chemtrade’s Pulp Chemicals business, located in Prince George, British Columbia, is a leading regional supplier of sodium chlorate and crude tall oil (CTO), both of which are chemicals used by the pulp and paper industry. Sodium chlorate is used to bleach pulp, and CTO is used as a less expensive alternative energy to natural gas.
Sodium chlorate is used for the production of chlorine dioxide, which in turn is used in the bleaching phase of the kraft pulping process. The majority of the sodium chlorate produced by Pulp Chemicals is used in Canfor Corporation’s three Prince George pulp and paper mills, with the balance of production being sold to third parties.
CTO is produced from soap skimmings that are removed from pulp mills to allow them to increase their production capability. Processing of these soap skimmings produces CTO. Most of the soap skimmings processed by Pulp Chemicals are received from Canfor’s three Prince George pulp and paper mills, and then returned to these mills as CTO for use in their power boilers as an alternative fuel to natural gas.
Long-term agreements
Chemtrade has 10-year exclusive contracts with Canfor under which Canfor purchases about 70% of Pulp Chemical’s sodium chlorate production, and pays a fee for the processing of 100% of Canfor’s soap skimmings into CTO. The price per tonne that Canfor pays for sodium chlorate is adjusted for changes in cost of the main raw materials, namely electricity, salt, caustic soda and steam. Chemtrade will toll process Canfor’s soap skimmings and Canfor will pay a fee to Chemtrade to compensate for a complete recovery of the processing costs plus a fixed dollar profit margin.
Infrastructure
Pulp Chemicals’ facilities are located adjacent to Canfor’s Intercontinental Pulp Mill and Prince George Pulp and Paper Mill, and connected by pipeline. The Northwood Pulp Mill is also in close proximity.
Sodium chlorate plant
|
Prince George, British Columbia
|
Crude tall oil plant
|
Prince George, British Columbia |
The sodium chlorate plant consists of two cell lines with a total capacity of about 78,000 tonnes per year. The CTO plant has a capacity of approximately 30,000 tonnes annually. Both plants are efficient state-of-the-art facilities.
|
