The Pas, MB - Tolko Industries Ltd. is improving its environmental performance and contributing to a more sustainable pulp and paper industry in Canada with help from an $810,000 investment by the Government of Canada.

Tolko's specialty kraft paper mill in The Pas, Manitoba, will receive funding under the Pulp and Paper Green Transformation Program (PPGTP) for new equipment, which will improve the mill's energy efficiency.

"Our government recognizes the important role that transformation and energy efficiency will play in the future of Canada's forest industry," said the Honourable Christian Paradis, Minister of Natural Resources. "The Pulp and Paper Green Transformation Program is supporting investments in green technologies that are helping the pulp and paper sector reduce their environmental footprint, while it continues to provide important forest products for consumers."

Tolko is one of 24 pulp and paper companies across Canada that qualified for credits under the $1-billion PPGTP program based on their 2009 production levels of black liquor, a liquid by-product of the pulping process used to generate heat and power.

Tolko's investment in a new evaporator mini-boil system will allow the mill to clean its existing evaporator and better maintain its efficiency without having to stop production. Prevention of the gradual fouling of the evaporator through the mini-boil system will save the mill 38,575 gigajoules of steam each year. This steam savings will reduce the consumption of electricity and of 773,492 litres in fossil fuel a year. The mill's reduced use of fossil fuels will lower its greenhouse gas emissions by an estimated 2,300 tonnes per year, or three percent of its 2008 emissions level.

"With the PPGTP projects installed and operating at Tolko Manitoba, our greenhouse gas emissions from fossil fuels will be cut in half," says Blair Rydberg, Site Manager for Tolko Manitoba. "The support of the PPGTP allows us to meet our goals of substantially improving energy efficiency while maintaining productivity excellence."

By improving its environmental stewardship, Tolko can continue to meet market demands for sustainably manufactured pulp and paper products while maintaining jobs in the community.

The Pulp and Paper Green Transformation Program complements initiatives that are being delivered under Canada's Economic Action Plan to sustain and improve the forest industry in Canada. Budget 2010: Leading the Way on Jobs and Growth is delivering $100 million over four years to support the development, commercialization and implementation of advanced technologies in the forest sector - helping create a world-class industry able to compete in the clean energy economy of tomorrow.

In addition, the Government of Canada has committed $170 million to assist the development of next-generation forest products and expand global markets for Canadian forest products. This funding includes $40 million to develop pilot-scale demonstrations under the Transformative Technologies Program.