Province directing energy breaks to Sault industry

A quartet of Sault Ste. Marie companies is getting a break on energy costs through the Northern Industrial Electricity Rate Program (NIERP).

Essar Steel Algoma, Tenaris Tubes, Flakeboard Company Ltd. and St. Marys Paper will realize a combined $55.9 million in savings over the next three years. In helping to reduce energy costs, the businesses will remain competitive, protecting more than 4,000 jobs, Sault MPP David Orazietti said in a news release.

Under the program, Essar Steel Algoma and Tenaris Tubes will save $11.5 million this year and an additional $35 million over three years. Flakeboard Company Ltd. will save $1.9 million this year and $6.4 million over three years. St. Marys Paper will save $1.5 million this year and $14.5 million over three years.

The cost-savings plan for Northern Ontario industry is providing electricity rebates of two centre per kilowatt-hour, the equivalent of up to 25 per cent on energy costs.

“Participation in the Northern Industrial Electricity Rate Program is a critical component of the St. Marys Paper Corp. business development and improvement efforts, as it provides the business with a competitive electricity rate while we transition the business into the bio-economy marketplace,” St. Marys CEO Dennis Bunnell said in the release.

Essar Steel Algoma CEO Jim Hrusovsky said the program allows the company to “pursue energy conservation initiatives that would otherwise be very difficult to implement,” and that the plan “provides measurable gains in energy conservation.”