Supporting energy efficiency at Campbellton pulp mill

Release

Department of Environment and Local Government

March 30, 2026

CAMPBELLTON (GNB) – The government is supporting energy-efficiency upgrades to the AV Group NB pulp mill in the Atholville district of Campbellton.

“Protecting the environment can’t be done alone,” said Environment and Climate Change Minister Gilles LePage. “When industry implements robust measures to reduce greenhouse gas emissions, it decarbonizes our economy and makes our province more resilient.”

Improvements to the mill’s equipment and systems will reduce waste heat, which is leftover energy produced by industrial machines and a major contributor to greenhouse gas emissions. These upgrades are estimated to reduce the facility’s carbon footprint by 3.4 per cent.

The project includes:

• Installing a new energy-efficient dump condenser to reduce thermal losses.

• Upgrading thermal insulation on piping and equipment to minimize heat loss.

• Installing advanced flow meters, temperature probes and other measurement tools to track energy consumption and performance.

• Implementing modern control systems to optimize operations and reduce energy waste.

“This partnership is more than an investment in industrial infrastructure; it is a shared commitment to building a cleaner, more competitive and more sustainable future for our province,” said Ashley Irvine, president and unit head at AV Group NB. “It showcases what is possible when government and industry work together toward aligned goals.”

The project received $254,600 from the government’s Output-Based Pricing System Industry Fund, which redistributes revenues collected from industrial emitters to make improvements that decrease greenhouse gas emissions at their facilities.

The output-based pricing system sets limits for greenhouse gas emissions. Facilities that remain below their limit earn performance credits. Those exceeding the limit must purchase credits from another facility or from the industry fund. As a result, available funding varies each year.

Facilities emitting 50,000 tonnes or more of carbon dioxide equivalent annually must participate in the output-based pricing system; participation is optional for those emitting between 10,000 and 50,000 tonnes.

The system enables large emitters to reduce the province's total greenhouse gas emissions while maintaining business competitiveness. It also helps prevent companies moving production to places with weaker rules, which results in emissions shifting instead of decreasing.

30-03-26

Related links

New Brunswick’s Output-Based Pricing System

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Environment and natural resources