Catalyst

Sector: Corporate

Employees:

> approximately 4,000 employees

Carbon Footprint:

> 458,800 metric tonnes CO₂e (2004)

TARGETS

> To reduce greenhouse gas emissions intensity by 15 percent in the next 5 years
> To move into the top quartile of Canadian pulp and paper companies, with respect to energy efficiency.

Achievements

> CO₂ emissions have been cut by 61% since 1990.
> Greenhouse gas emissions from three of NorskeCanada’s mills dropped by 30% between 1990 and 1999, while production in these mills rose by 12%.
> The energy intensity of the company dropped from 37GJ/tonne product in 1990 to 33GJ/tonne product in 1999.

Benefits

> CA$2 million in benefits from energy provider BC Hydro as a result of reduced energy consumption.
> An estimated saving over past 10 years CA$20-$30 million due to energy efficiency and related measures.

Low Carbon Solutions

Background

Catalyst Paper Corporation (formerly NorskeCanada) is a major North American manufacturer of groundwood printing papers. It has approximately 4,000 employees and the capacity to produce 1.8 million tonnes annually of publication papers for magazines, catalogues, telephone directories and newspapers at its mills in British Columbia. The majority of the company’s products are sold to customers in North America, Asia and Western Europe.

The company’s greenhouse gas emissions are strongly related to its energy consumption – both the amount and type of energy used to manufacture its products. Approximately 98% of Catalyst’s direct emissions are derived from the combustion of natural gas and Bunker C (oil). Indirect emissions are produced from electricity purchased by the British Columbia mills, supplied by BC Hydro.

Catalyst communicates the rationale behind company’s decisions through workgroup meetings, newsletters at each mill as well as their intranet. Community neighbours are kept apprised of the company’s environmental performance and initiatives through community advisory forums and local news inserts.

Catalyst is the single largest consumer of BC Hydro, one of Canada’s largest electrical utilities. With an annual energy bill of approximately CA$200 million, reducing expenditure through energy efficiency was one of the primary motivators for the company’s efforts to reduce its greenhouse gas emissions. However, Stu Clugston, Catalyst’s Vice-President of Corporate Social Responsibility, emphasises that beyond reducing energy expenditures, there is a strong desire within the company to ‘do the right thing’. “We are a huge consumer of natural resources in British Columbia,” Clugston says, “and we have taken the position that our footprint is way too big. We can’t just brush the sand and make it go away, but we can certainly reduce our impact”.

In order to reduce emissions associated with purchased energy, Catalyst has been working with energy supplier BC Hydro on its Power Smart Program to identify internal power saving opportunities. BC Hydro has a strong initiative for improving the energy efficiency of its customers, because it keeps the energy company from having to build additional capacity. The Elk Falls mill also hired BC Hydro’s Energy Coach for 6 months in 1999 to prepare a list of potential energy saving projects for the facility. “Power Smart is a very innovative programme,” says Clugston, “It rewards large consumers and even small residential consumers for making the right steps around energy efficiency.” Catalyst recently received $2 million in benefits from BC Hydro as a result of its energy conservation measures.

Catalyst is also looking at ways to self-generate power using cogeneration technology at its existing industrial sites so that at peak times the company can remove itself from the main grid. This prevents the need for new energy generation, and is more cost-efficient. Catalyst currently co-generates about 80 megawatts which is enough to power about 50,000 homes.

The last decade has seen a reduction in greenhouse gas emissions in the pulp and paper industry due to improvements in technology and efficiency. The $400 million modernization of Catalyst’s Crofton Mill in 1992 resulted in major emissions reductions, and all of the company’s mills now have ISO 14001 certified Environmental Management Systems in place. These regularly undergo internal and external compliance audits, which are communicated to management and the Board so that deficiencies can be addressed.

Reducing greenhouse gas emissions involves key staff at both the mill and corporate level at Catalyst, from the Senior Vice-President of Operations to the Environmental Managers at each site. An Environment Council is formed from the Environmental Managers who work closely with the Energy Team. ‘Scorecards’ are given to each mill on a monthly basis and are examined by the Corporate Energy Council. Quarterly reviews with the executive provide guidance on the greenhouse gas implications of energy decisions.

Russ Horner, who was appointed as Catalyst’s CEO in 2000, has introduced a range of contemporary values to the company, and his personal commitment to the company’s reduction of greenhouse gas emissions has allowed Catalyst to build on its existing initiatives, and to drive the company further.

Catalyst is a leader in lighter weight paper, and has been continually bringing down the weight of its paper across product lines. In addition to using less fibre, lighter paper also means more paper per roll and fewer rolls to ship, resulting in greenhouse gas savings throughout the supply chain.

Looking forward, Catalyst is investigating the possibility of producing a carbon-neutral paper. This would be a first for the paper industry and could be marketed as a unique, premium product. “We’re attempting to bundle ethical, environmental and social attributes together to create a different kind of pedigree for our products,” says Stu Clugston, Vice President, CSR. “If we can make innovative ideas like this happen, as well as building on the programs we already have in place then we will continue to reduce our greenhouse gas emissions, and see significant business benefits.”

A number of projects at Catalyst’s mills are focused on increasing the amount of energy from biomass, along with reducing the use of fossil fuels, the demand for steam, and energy consumption.

Strategic changes in production have also helped to reduce emissions. For example, sawdust and other waste wood (which would otherwise be burned or landfilled) is used for paper and pulp production, and recycling de-inked pulp reduces the need for virgin fibre content.

In addition to energy conservation measures Catalyst is currently examining how further emission reductions can be achieved in the transport of materials and products. Consideration is given to the practicalities and emission impacts of moving goods by train, barge, freighter, and truck. As well, wherever possible, ‘backhaul’ arrangements are made so instead of returning empty, containers are returning filled with materials needed by the mills.

Catalyst is a major North American manufacturer of groundwood printing papers.

Catalyst is investigating the production of carbon-neutral paper, highlighting the company’s commitment to environmental stewardship.

Russ Horner, Catalyst’s CEO is working to reduce greenhouse gas emissions intensity by 15 percent in the next 5 years.