October 30, 2009

Pulp producers gain in black biofuel credit

Pine chemical company Arizona Chemical is complaining about the possibility of losing their black liquor-based feedstock because of the federal tax credit that are being given to pulp mills who mix black liquor with diesel and burn them as fuel for their operations.

Black liquor, by the way, is a liquid byproduct you get at a paper mill when wood is turned into pulp. Pine chemical companies rely on these byproducts such as black liquor soap/crude tall oil and crude sulphate turpentine as feedstocks to make renewable-based chemicals.

Arizona Chemicals noted that burning black liquor for biofuels could lead to plant closings across the pine chemicals industry and increased imports of replacement products, which are primarily made of non-renewable petroleum sources.

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