QAQRT ANNUAL REVIEW CARIBOO PULP AND PAPER 2011

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1 QAQRT ANNUAL REVIEW CARIBOO PULP AND PAPER 2011

2 PARTICULATE EMISSIONS POINT SOURCE PARTICULATE Permitted sources by MOE include 4 stacks: Recovery Boiler Power Boiler Limekiln Dissolving Tank PMt measured on a quarterly basis by trained, certified personnel using calibrated equipment PM10 Use NCASI emission factors and reported to Federal Government NPRI PM2.5 Use NCASI emission factors and reported to Federal Government NPRI FUGITIVE PARTICULATE EMISSIONS Hog fuel dust collection system Road dust estimated and reported to Federal Government NPRI based on emission factors

3 PM 2.5 EMISSIONS ALL PERMITTED SOURCES PARTICULATE MATTER PM MASS ( tonnes/year) DATE

4 CRITERIA QUESTIONS PARTICULATE What have you done in the past 12 months (2010 report) Recovery Boiler Paprican worked with CPP to adjust air flows for good combustion Joy Precipitator collector plates rebuilt, continued new style of ridged electrode (pin in pipe) installation in 7 of 8 fields for improved collection efficiency and downtime due to shorts. Consultant used to adjust power requirements for best efficiency to each field. Power Boiler May 2011 shutdown Jansen Engineering performed upgrade to boiler air system. May 2011 shutdown Envirocare upgraded power boiler scrubber with mechanical scrubbing nozzles. Limekiln May 2011 Envirocare upgraded venturi scubber with new high pressure pumps and nozzles, mist eliminators and new control logic. Installed in 2010 model predictive controls (MPC) and optimizing performance Dissolving Tank All pumps, lines, valves and venturi scrubber thoroughly high pressure cleaned on major shuts and throughout the year on area shuts. In addition the bypass damper was repaired in May Fugitive emissions Continue to use dust suppressant on most traveled gravel roads and use larger aggregate rock during winter conditions.

5 CRITERIA QUESTIONS PARTICULATE What have you done in the past 12 months Recovery Boiler Evaluate performance of changes to electrodes on Joy precipitator 19.3 % decrease in PMt emissions Power Boiler Optimize equipment upgrades, monitor performance, evaluate further upgrades to power boiler and scrubber Install a de-stoner as part of hog fuel conditioning resulting in less upsets to power boiler operation Trial natural gas reduction at NCG burner Retube the generating bank and replaced a bank of scrubbing nozzles at the venturi section. May 2012 ($ 3.5mm project) 8.5% reduction in PMt emissions Limekiln Optimize, monitor and evaluate performance of scrubber equipment upgrades 7.1% increase in PMt emissions. Installed new variable throat on scrubber to increase delta p and reduce PMt emissions May 2012 Dissolving Tank Monitor, continue to high pressure clean during area shuts Evaluate the need to enhance the ph of scrubbing medium Evaluate twinning the scrubber pump for improved reliability No change in PMt emissions Fugitive Emissions Continue to use dust suppressants on well traveled roads and use large aggregate rock during winter conditions.

6 CRITERIA QUESTIONS PARTICULATE What are you planning to do in the next 12 months Recovery Boiler Complete the rigid style electrode installation in the 8 th and last field of the Joy precipitator Power Boiler Evaluate and optimize performance of destoner and other hog conditioning equipment Evaluate and optimize perfomance of boiler and scrubber operation. Re-install generating bank ash conveyor to decrease load to scrubber. Limekiln Evaluate and optimize variable throat at venturi scrubber. Dissolving tank Continue high pressure cleaning program during area shuts Fugitive Emissions Continue to use dust suppressants on well traveled roads and use large aggregate rock during winter conditions

7 CRITERIA QUESTIONS PARTICULATE What are your long term plans for meeting the 2016 goals. CPP 5 year plans include the following: Meeting or exceeding power boiler particulate emissions at full hog fuel rates 24/7. Continue evaluating boiler and scrubber operation. Look for opportunities to improve Complete the rigid style electrode installation in the 8 th and last field of the Joy precipitator. Continue to adjust power requirements to each field to maximize efficiency Evaluate the reliability of all permitted scrubbing systems. Continue to troubleshoot and use consulting services for additional help

8 ODOUR EMISSIONS POINT SOURCE TRS EMISSIONS Permitted sources by MOE include Recovery Boiler Bubble ( dissolving tank, power boiler, limekiln, brownstock scrubber, and bleach plant scrubber) TRS measured by trained personnel over a 4 hour consecutive period on a monthly basis using gas chromatography. Recovery boiler measured on continuous basis and reported as a four hour average. FUGITIVE TRS EMISSIONS Reported to Federal Government NPRI Spill Basin Aerated Lagoons POINT SOURCE CLO2 EMISSIONS Permitted sources by MOE include: Bleach Plant Scrubber

9 TRS EMISSIONS ALL SOURCES TRS EMISSIONS as H2S tonnes per YEAR YEAR STACKS WASTEWATER

10 TRS PERMITTED SOURCES (BUBBLE) TRS TOTAL (BUBBLE) kg TRS per DAY DATE

11 TRS PERMITTED SOURCES (BUBBLE) COMBINED TOTAL TRS kg/day Jan F M A M J J A S O N D/ kg/day 2010 kg/day

12 COMMUNITY IMPACT PUBLIC ODOUR COMPLAINTS NUMBER J/11 F M A M J J A S O N D/ Odour Complaints Odour Complaints

13 CRITERIA QUESTIONS ODOUR What have you done in the past 12 months (2010 report) Recovery Boiler TRS TRS analyzer continues to be audited by MOE twice per year TRS analyzer continues to be calibrated daily Air permit amended to include 4 hour rolling average of TRS reporting Paprican worked with CPP to adjust air flows for good combustion Bubble TRS Purchased and installed new TRS analyzer on limekiln Purchased and commissioned new Gas Chromatograph for testing and monitoring Amended air permit to redirect Digester NCG vent gases to the Bleach plant scrubber resulting in lower TRS and lower CLO2 emissions. Continue to high pressure clean dissolver scrubber, pumps, lines, and valves on area shuts. May 2011 Envirocare upgraded kiln venturi scubber with new high pressure pumps and nozzles, mist eliminators and new control logic. May 2011 shutdown Jansen Engineering performed upgrade to boiler air system. Commissioned automatic controls to add caustic to brown scrubber when NCG diverted. Fugitive TRS Continue to dredge spill basin on an annual basis Maintain good ph and dissolved oxygen control in aerated lagoons Bleach Plant CLO2 Amended air permit to redirect Digester NCG vent gases to the Bleach plant scrubber resulting in lower TRS and lower CLO2 emissions

14 CRITERIA QUESTIONS ODOUR What have you done in the past 12 months Recovery Boiler TRS TRS analyzer continues to be audited by MOE twice per year TRS analyzer continues to be calibrated daily. Continue to work with FP Innovations to maximize liquor recovery without adversely affecting TRS Bubble TRS On July 13th, high TRS emissions from the dissolving stack resulted in the Combined Sources TRS being over permit for the month. The scrubber was cleaned and caustic addition was started to help bring down emissions. Subsequent testing showed the numbers were back in compliance. An RCI to determine the cause and prevent future similar incidents was conducted. Continue to high pressure clean dissolver scrubber, pumps, lines, and valves on area shuts. Added a variable throat damper to kiln scrubber. Power boiler continues to be main NCG incineration point Limekiln TRS analyzer continues to be calibrated on a daily basis Continue to monitor and optimize our present equipment and programs. Consultants have advised on opportunities such as enhancing ph control at the dissolver scrubber. Fugitive TRS Continue to dredge spill basin on an annual basis Maintain good ph and dissolved oxygen control in aerated lagoons Bleach Plant CLO2 Purchased and ready to install a new CLO2 analyzer.

15 CRITERIA QUESTIONS ODOUR What are you planning to do in the next 12 months TRS Continue to monitor and optimize our present equipment and programs. Look for opportunities such as enhancing ph control at the dissolver scrubber. CLO2 install new CLO2 analyzer and optimize and evaluate its performance

16 CRITERIA QUESTIONS ODOUR What are your long term plans for meeting the 2016 goals. TRS and CLO2 Continue to look for opportunities to reduce emissions. Possible use of caustic at dissolver scrubber to enhance TRS removal. Presently constructing a green transformation project to replace existing CLO2 production system with new BAT (R-8) system. Uses methanol to replace SO2

17 GHG EMISSIONS BC has developed Cap and Trade Act Reporting Regulations effective 2010 CPP submitted audited GHG report to MOE on deadline of March 31, 2012 Nothing is moving forward with Cap and Trade. There will be no cabinet meetings to discuss/review cap and trade and all drafted regulations will be shelved. All allocation efforts are also put on hold. BC will remain on WCI Inc board of directors for the purpose of alignment and consistency of perspective only. No funds have been budgeted for any deeper levels of involvement.

18 GHG EMISSIONS GREENHOUSE GAS REDUCTION tonnes CO2e YEAR

19 GHG EMISSIONS What have you done in the past 12 months (2010 report) Developed a plan to use canola oil to change the solubility limits of soap separation in weak black liquor. This has allowed soap to accumulate in the equipment it was designed for so that it could be collected to produce CTO and displace natural gas. Upgraded power boiler air combustion systems to improve hog fuel burning What are you planning to do in the next 12 months Optimize soap collection efficiency and CTO burning efficiency at the limekiln and power boiler. Optimize burning of hog fuel in power boiler What are your long term plans Reduce dependency on natural gas Increase natural gas substitution at limekiln with CTO. (target 100%)

20 GHG EMISSIONS What have you done in the past 12 months Continue to use canola oil to change the solubility limits of soap separation in weak black liquor. This has allowed soap to accumulate in the equipment it was designed for so that it could be collected to produce CTO and displace natural gas. Upgraded hog conditioning system and optimized power boiler air combustion systems to improve hog fuel burning What are you planning to do in the next 12 months Continue to optimize soap collection efficiency and CTO burning efficiency at the limekiln and power boiler. Continue to optimize burning of hog fuel in power boiler What are your long term plans Reduce dependency on natural gas Increase natural gas substitution at limekiln with CTO. (target 100%)

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