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Canfor Announces Investment in New Arbios Biotech Low Carbon Biofuel Plant in B.C. (and New Sustainability Goals)
Thursday, October 7, 2021
Vancouver, BC, October 7, 2021--(T-Net)--Canfor Corporation (TSX: CFP) announced this week its positive final investment decision in support of the construction of the first phase of Arbios Biotech's new innovative state-of-the-art biomass to low carbon biofuel plant in Prince George, British Columbia.
The plant will use first-of-a-kind technology to convert sawmill residues, primarily bark, into high value renewable biocrude which can be further processed in refineries to produce low-carbon transportation fuels.
Arbios is a joint venture between Canfor and Licella Holdings Ltd.
Arbios plans to proceed initially with one processing line which will convert 25,000 dry tonnes of wood residue to 50,000 barrels of sustainable bio-oil per year, a direct substitute for fossil crude, from post-consumer waste wood biomass.
Being scheduled to start producing renewable biocrude in the first half of 2023, the plant is planned to be built on a portion of Canfor's Intercontinental Pulp Mill site, and Arbios will have the potential to expand up to four processing lines within the existing footprint. The new Arbios plant will utilize Licella's patented Cat-HTRTM decarbonization platform.
The plant represents the next scale-up of its hydrothermal liquefaction (HTL) technology, building on the recent commissioning of Arbios' CS-1 facility on the Central Coast of New South Wales (Australia), which continues to demonstrate the technology's capacity to produce low-carbon products.
Don Roberts, Chair of the Arbios Board
"We are delighted to take this next step on our journey towards our vision of providing low carbon circular economy solutions around the world. The evolution of this project will help BC's and Canada's suppliers of transportation fuels achieve their emissions and low-carbon targets," said Don Roberts, Chair of the Arbios Board.
"I am also pleased to announce that Alan Nicholl has been appointed to the role of President & CEO of Arbios. Alan's strategic leadership and financial discipline will be critical assets as Arbios continues to develop and grow and his appointment has the full support of Canfor. Alan has been a member of the Arbios Board and Management Committee since they were established.
Canfor also announced their ambition to become a leader in sustainability, a vision that includes commitments to sustainable forestry, a stronger focus on safety, health, wellness, inclusion and diversity amongst our employees, and strengthening partnerships with Indigenous communities.
Don Kayne, President and CEO, Canfor
"Today, we begin an ambitious sustainability journey that will change how we work and the impact we have on our communities and the planet. We imagine a future as sustainable as our forests," said Don Kayne, President and CEO, Canfor. "This is an opportunity as much as it is our responsibility. Sustainable solutions are in demand around the world. Customers consider environmental and social impact a priority when making their buying decisions. Employees want to work for a company that's protecting and nurturing their environment and communities. Together we will frame the future."
"As part of our sustainability journey, Canfor is committed to growing our business to include bio-materials and bio-innovation to support a low carbon future. Our decision, as part of the Arbios joint venture, to support investment in a state-of-the-art biomass to low carbon biofuel plant in British Columbia is a demonstration of our commitment. We are also building a Bio-Innovation team that will unlock the full value of each log by developing and commercializing new opportunities," added Kayne.
Canfor also released their 2020 Sustainability Report, which includes their new goals and targets and demonstrates their progress made to date on their sustainability efforts.
Among Canfor's sustainable achievements in 2020, they reported that they have started to build a Bio-Innovation team to develop new sustainable solutions, they planted 64 million seedlings, they maintained 100% SFI or FSC certification in their Canadian woodland operations, they achieved 99% SFI Fibre Sourcing Standard in their U.S. -sourced timber, and they generated enough electricity to power over 78,000 homes for one year, of which 76% of the fuel consumed was from renewable sources.
About Arbios Biotech
Arbios Biotech is a joint venture between technology pioneers Licella and integrated forest products company Canfor. Arbios Biotech uses cutting edge technology to convert end-of-life wood and biomass into renewable biofuels and biochemicals. Licella is a global leader in the field of Hydrothermal Liquefaction (HTL). The company has dedicated over a decade to developing its patented Cat-HTRâ„¢ ('Catalytic Hydrothermal Reactor') platform that produces low-carbon biocrude (a renewable and sustainable bio-oil for the circular economy), from which low-carbon transportation fuels and chemicals can be produced. Canfor is one of the world's largest producers of sustainable lumber, pulp and paper, and is a North American leader in green energy production. Arbios Biotech represents two leaders coming together with a shared vision - to create a low-carbon circular economy. For more information, please visit www.arbiosbiotech.com
About Canfor
Canfor is one of the world's largest producers of sustainable lumber, pulp and paper, and is a North American leader in green energy production. With operations in Western Canada, Southern United States and Sweden, and sales offices across the globe, you can find Canfor products throughout the world. Headquartered in Vancouver, the company has a global workforce of over 7,000 employees. We are proud to be a global leader demonstrating the power of our very own renewable resources.
Forward Looking Statements
Certain statements in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as "expects", "anticipates", "projects", "intends", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and actual events or results may differ materially. There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements. Forward-looking statements are based on current expectations and Canfor assumes no obligation to update such information to reflect later events or developments, except as required by law.
Canfor is a leading integrated forest products company based in Vancouver, British Columbia ("B.C.") with interests in BC, Alberta, North and South Carolina, Alabama, Georgia, Mississippi, Arkansas and Louisiana, as well as in Sweden with 70% interest in Vida Group. Canfor produces primarily softwood lumber and also owns a 54.8% interest in Canfor Pulp Products Inc., which is one of the largest global producers of market Northern Bleached Softwood Kraft Pulp and a leading producer of high performance kraft paper. Canfor shares are traded on The Toronto Stock Exchange under the symbol CFP. For more information visit canfor.com.
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