Paper Excellence Looks to Liverpool
As announced yesterday, Paper Excellence and the Province of Nova Scotia reached a settlement agreement. The settlement agreement is subject to approval by the Supreme Court of British Columbia.
If approved, Paper Excellence will begin a feasibility study to determine if a new mill is viable in Liverpool, Nova Scotia. This process would take between nine and 12 months. The project could bring over $1 billion of investment to rural Nova Scotia if viable.
In a release, Nova Scotia Premier Tim Houston said, “We’ve come a long way and have come to a resolution that is fair to all sides – settling legal and financial issues, protecting pensioners and setting a new path forward.”
4 Things To Know About The Settlement
1. A New Mill Might Be Possible
Paper Excellence is funding a feasibility study to determine whether a new Northern Bleached Softwood Kraft (NBSK) pulp mill is feasible. If so, the Northern Pulp group will seek third-party project financing to design, construct, and operate the mill.
2. The Pictou Site Will Be Maintained
Paper Excellence will maintain the former Northern Pulp site in Pictou for potential future woodland logistics operations. The Pictou site will remain in cold hibernation during the feasibility study. Northern Pulp will continue to comply with its obligations under the existing ministerial order, environmental laws, and regulations and provide ongoing care and maintenance of the site.
3. Pensions Are Fully Funded
Former Northern Pulp workers’ pensions will be fully funded, regardless of the outcome of the feasibility study.
4. Lawsuit Against the Province Dropped
In December 2021, the company filed a lawsuit against Nova Scotia for $450 million. As part of this settlement, Paper Excellence is dropping the lawsuit.
Economic Impact of Northern’s Closure
In 2022, Nova Scotia’s forestry sector generated $1.8 billion in economic impact. The sector’s impact will be even higher if the mill reopens. Northern Pulps’s closure in 2020 carried a substantial impact, resulting in multiple cases of job loss and financial hardship to those most closely tied to the mill’s operation.
“The closure of Northern Pulp was hard on many forestry families,” said Forest Nova Scotia executive director Stephen Moore. “It also cost people their jobs, families their livelihoods, and the province revenue.”
Between 2018 and 2022, the sector’s GDP declined by 15 percent, exports by 18 percent, and employment by 14 percent.
“500 families lost their jobs and income because of the mill’s closure,” said Moore.
Potential Benefits for Public Safety
As detailed elsewhere, active forest management reduces the risk of wildfires. However, it is expensive and time-consuming.
Active management involves trimming, vegetation management, and removing downed trees. The industry refers to this as low-grade fibre. Northern Pulp purchased more than one million tonnes of this every year. Without a customer to purchase this, there was no way to get it out of the woods.
If this low-grade fibre were left in the woods, it would dry out and decay. In short, it would become forest fire fuel. If a mill were to reopen, reducing the amount of forest fire fuel would become easier and more economical.
More Work to Do
There is no guarantee that a mill will reopen, but the industry is here to support the effort. We also need to continue promoting district heating, renewable fuels, the forest bioeconomy, and increased use of wood products in construction.
Ultimately, the sector wants to drive up demand for our resources, which will lead to more jobs and investment in Nova Scotia.
