New Brunswick supports Atholville mill upgrade to reduce fossil fuel dependence

The government of New Brunswick has announced environmental funding of $254,600 for AV Group NB’s pulp mill in Atholville, near Campbellton.

The facility produces dissolving pulp for viscose staple fibre, a key material in the textile industry.

At first glance, the funding size appears modest.

But the technical direction behind the investment is far more significant:

👉 recovering and reusing energy already inside the mill

Where the money is going: small upgrades, system-level impact

The funding will support several targeted upgrades:

• improved thermal insulation systems
• modernized process control systems
• installation of an energy-efficient dump condenser
• addition of flow and temperature monitoring probes

Individually, these are not large-scale transformations.

But together, they address a core issue in pulp production:

energy loss across multiple stages of the process.

Heat recovery: the real objective behind the project

According to AV Group NB, the key outcome is:

👉 capturing waste heat from boilers and reusing it in production

This recovered heat will be redirected to:

• woodchip cooking
• pulp bleaching
• drying processes

In a typical pulp mill:

• large amounts of thermal energy are generated
• a significant portion is lost through exhaust or cooling systems

👉 This project aims to change that balance:

from energy generation → to energy circulation

Target: eliminating Bunker C oil consumption

One of the most important statements from the company:

the goal is to reduce Bunker C oil consumption to zero

Bunker C is a heavy residual fuel oil, commonly used in older industrial systems.

It is:

• carbon-intensive
• costly under current energy markets
• increasingly targeted by environmental regulations

👉 Eliminating it represents:

• a major reduction in emissions
• a significant shift in energy sourcing strategy

3.4% reduction: small number, real meaning

The upgrades are expected to reduce the mill’s carbon footprint by 3.4%.

On paper, this may seem limited.

But in pulp production:

• energy consumption is continuous
• emissions are tied to large-scale thermal processes

👉 Even a few percentage points translate into:

substantial long-term cost savings and emission reductions

Monitoring systems: data becomes the new control layer

The addition of flow and temperature probes signals another shift:

👉 energy management is becoming data-driven

These systems allow:

• real-time tracking of energy use
• identification of inefficiencies
• optimization of process parameters

In modern mills:

what cannot be measured cannot be optimized

Editorial insight: What this means for the pulp and paper industry

This project reflects a broader trend:

1. Energy efficiency is replacing capacity expansion

Instead of building new lines:

👉 mills are optimizing existing systems

2. Waste heat is becoming a strategic resource

Not a byproduct.

3. Fossil fuel dependency is being reduced step by step

Not through one major shift—but through multiple targeted upgrades

4. Control systems are becoming as important as mechanical systems

Digitalization is now part of energy strategy

What this means for converters and machinery suppliers

For companies in:

• roll-to-roll processing
• slitting and rewinding
• coating and converting

this has direct implications:

Equipment design must consider energy efficiency

Buyers increasingly evaluate:

• total energy consumption
• heat loss during operation

Integration with plant systems is becoming critical

Machines must:

• align with plant-wide energy recovery systems
• support data monitoring

Stability and consistency reduce energy waste

Poor process control leads to:

• rework
• downtime
• unnecessary energy consumption

Final perspective

This is not a headline-grabbing investment.

It is something more important:

a practical example of how mills are adapting to energy pressure in real time.

Instead of waiting for breakthrough technologies, operators are:

• recovering lost energy
• reducing fuel dependency
• improving process control

And in today’s market:

the mills that survive will not be the largest—
but the most energy-efficient.

Last Updated on 31/03/2026 by Jota Machinery