Catalyst Paper Corporation

The story

Catalyst Paper Corporation (Catalyst), operator of five pulp and paper mills across the province, and BC Hydro's largest customer, implemented a corporate energy management program with the goal of creating annualized, sustainable electricity savings of $5-million by the end of 2006.

The situation

Catalyst Paper Corporation is a producer of pulp and paper products with sales of $1.8-billion per year. They have operations in Crofton, Port Alberni, Elk Falls, Powell River, a de-inking facility in Coquitlam and distribution centre in Surrey.

In the past, Catalyst enjoyed a competitive advantage in part due to the fact that BC Hydro's electricity rates are the third lowest in North America. Consequently, corporate efforts focused instead on reducing thermal energy fuel costs.

When BC Hydro introduced the Transmission Service Rate (stepped rates) in April 2006, Catalyst saw an opportunity to reduce costs by focusing on electricity and conservation. At the same time, because of the company's general scarcity of capital, it was important that energy savings projects not involve high capital costs and be achievable through low-cost or no-cost measures. Catalyst decided to partner with BC Hydro to develop a corporate energy management plan.

The solution

Catalyst's energy management program, called Power Watchers, is supported by two corporate energy managers who are co-funded by the Industrial Energy Manager Initiative. The energy managers support a comprehensive program that includes the identification and implementation of no-cost or low-cost energy savings initiatives at the mills. They work with energy committees at each mill to generate and implement site specific ideas, and employee awareness.

The benefits

Catalyst has so far identified or completed energy savings opportunities totalling more than $5-million in annual electrical energy cost savings through its energy management program.