EPA's MACT Compliance Projects Buoys Pulp and Paper Capital Spending

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). The second phase of the Environmental Protection Agency’s (EPA) maximum achievable control technology (MACT) I mandate, will have a more than $250 million impact on the pulp and paper industry in 2004-2005. MACT Phase II requires the reduction of high volume low concentration (HVLC) pollutants; whereas, phase I required the reduction of low volume high concentration (LVHC) pollutants. Phase I compliance projects have been completed and phase II has a compliance date of April 2006. Compliance comes at a period when the pulp and paper industry is nearing recovery from record low capital spending cycles.

Primary areas in mills that may see construction or modifications include brownstock washing lines or hoods, decker hoods, knotters, screens, coolers/condensers, electrical, controls, and structural components. In some instances, an entire brownstock washing line may be replaced. Alternatively, HVLC gases may be collected and disposed of in a boiler or lime kiln at a much lower cost.

Industrialinfo.com has identified fourteen projects that are in the design, engineering, or construction phase that are driven in part or entirely by the collection and disposal of HVLC.

Click on the image at right to view the Active U.S. HVLC Projects List.

Leading the industry, Georgia-Pacific (NYSE: GP) (Atlanta, Georgia) and International Paper (NYSE: IP) (Stamford, Connecticut) each have four active HVLC projects a piece.