This project involves the construction of a new pulp mill with a 61 MW surplus electric power generation capacity to the grid in the XIV Region of Chile. The project uses biomass residues (sawdust and bark) from third party sawmills and black liquor from the pulping process as renewable fuel sources to cogenerate heat and power.

The Valdivia project assists Chile’s sustainable development by fostering the implementation of distributed power generation. By using biomass residues, the project creates additional labor opportunities and prevents the uncontrolled burning or natural decay of the residues. This prevents water contamination and decreases the risk of forest fires in the region, which has historically suffered from high levels of particulate material pollution.

This project is a good example of how forestry companies can successfully implement renewable, clean and more efficient technologies, while at the same time incorporating effective and scalable policies to combat Climate Change in their long-term development strategy.