Domtar's Sustainability Economics
Domtar is a case study of how supply and demand has accelerated sustainability—in particular, how the growing supply of natural gas has accelerated the reduction of coal burning in our power boilers. Over the past few years, energy economics and the drive for competitive advantage through improved efficiency have reduced air pollution and carbon dioxide emissions further and faster than what would have occurred under any likely scenario involving additional government regulation.
Since 2014, Domtar has invested about $20 million to stop burning coal in six power boilers—two in Johnsonburg, Pennsylvania, one in Port Huron, Michigan, and three in Nekoosa, Wisconsin.
In addition to lower emissions and currently lower fuel costs compared to coal, gas-fired boilers generally require less expensive maintenance, so these conversions will reduce our ongoing operating costs.
But that is not all. By phasing out coal, Domtar has substantially reduced the amount of boiler ash that is generated. This has allowed us to accelerate progress toward our goal of reducing the amount of waste we send to landfills.
We like these results. So do our neighbors. Because gas is delivered via pipeline, there are no more trucks or trains making coal deliveries to these mills, reducing local traffic.
And our customers who care about the integrity of their supply chains also appreciate Domtar’s leadership. Domtar generates some of the lowest greenhouse gas emissions per unit of production compared to the average emissions of our competitors’ mills in North America and Europe.
Our advantage is even greater when our performance is compared to the average emissions of our competitors in the Asia Pacific region. According to Fisher International’s FisherSolveTM database, the intensity of Domtar’s direct greenhouse gas emissions from fossil fuels is about two-thirds less than that of pulp and paper producers operating in the Asia Pacific region. We believe that responsible pulp and paper buyers will care about this sustainability performance gap.
We think that it was smart to get ahead of the curve in managing these emissions, and that our customers, our investors and our communities will realize the benefits for the long term.
Domtar’s 2017 Sustainability Report details the company’s endeavor to take a longer term view of creating and preserving value for our shareholders, customers, employees and communities. For more inspiring stories about Domtar's sustainability efforts, visit the Domtar Newsroom at https://newsroom.domtar.com.
