Thermal Energy to retrofit Fraser Papers mill

Ottawa's Thermal Energy International (TSX: TMG) said today it would supply Toronto-based Fraser Papers with a waste heat recovery system.

The six year contract is worth up to $3.8 million, according to Thermal Energy, based on the estimated amount of waste heat to be recovered at Fraser's pulp mill in Thurso, Quebec.

Thermal Energy will supply, install and monitor the FLU-ACE system at the mill.

The company said it would start work on the project in October.

"This initiative will improve our energy efficiency and strengthens our environmental position at our pulp and paper facilities," said Jean Pierre Benoit, general manager at the Thurso pulp mill.

The Thermal Energy system is expected to reduce consumption of fossil fuels used in the boilers at the Thurso mill by 20 percent, or up to 10 percent mill's total fossil fuel use.

In addition to lowering energy costs, the heat exchange unit will reduce emissions of greenhouse gases, such as nitrous oxide and sulphur dioxide, according to Thermal Energy.

Fraser Papers, which operates 16 mills, as well as pulping facilities and sawmills, in Maine, New Brunswick, New Hampshire, and Quebec, has an option to purchase the FLU-ACE project assets at the end of the contract term.

Earlier this month, Thermal Energy said it received its first order in China for its GEM steam traps.

The company said it would install its condensate return system on one of the paper machines at Lee and Man Paper Manufacturing in Hongmei in Guangdong Province (see Thermal Energy gets first order in China).

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