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A paper mill in Western Maryland is planning to reduce greenhouse gas emissions through a site-specific climate action plan.
NewPage’s paper mill in the Luke area of Allegany County participates in the Maryland CO2 Budget Trading Program, as part of the Regional Greenhouse Gas Initiative (RGGI). RGGI reduces carbon in two ways: first, the cap on allowed emissions decreases over time, so by 2018 power plants in participating States will reduce carbon emissions by 10 percent; second, proceeds from the sale of carbon allowances are invested in energy efficiency programs, renewable energy, technology development, rate relief, and other programs that benefit energy consumers and create "green jobs."
Most fossil-fueled electricity generators in Maryland are required to purchase allowances in order to meet the RGGI requirements for emitting carbon dioxide. Maryland’s CO2 Budget Trading Program allows companies that generate at least 25 megawatts of energy but sell less than 10 percent of that energy back to the grid to acquire allowances by developing and implementing an approved climate action plan to reduce emissions. The Luke mill is a small generator that burns fossil fuels on-site to make the electricity that powers the operation. New Page and Severstal’s steel-making facility at Sparrows Point are the two electricity generators in Maryland that are meeting their RGGI requirements in this way.
To meet these requirements, the NewPage mill:
- Requested a permit condition to limit the commercial sale of its annual electricity output;
- Reported its carbon dioxide emissions quarterly; and
- Complied with an approved climate action plan that reduces greenhouse gas emissions through energy efficiency, reducing steam leaks, and upgrading system components.
The climate action plan outlines ways to monitor, reduce, and offset emissions, including installing a monitor for carbon dioxide exhaust emissions on each of its three boilers and using wood waste instead of coal to produce electricity. Working with West Virginia University’s National Mine Land Reclamation Center, Luke will also conduct a trial planting of switchgrass on surface-mined land that has been reclaimed. MDE approved the inclusion of this activity in the plan as an “offset” because it is a voluntary measure that offsets emissions, creating a “sink” that stores carbon dioxide rather than actually reducing carbon dioxide emitted.
Such steps allow the mill to reduce its carbon footprint and comply with RGGI. This compliance option demonstrates that small electric producers can meet their greenhouse gas reduction goals and reduce energy costs.
Click here for further information on RGGI and the Maryland CO2 Budget Trading Program.
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