The Commonwealth Financing Authority has approved a $1 million state grant for Domtar Paper Co.’s installation of a three-mile pipeline to its facility in Johnsonburg, Senate President Pro Tempore Joe Scarnati, R-Brockway, announced on Tuesday.
Scarnati, who was instrumental in securing funding for the project, explained that Domtar owns and operates the paper mill in Johnsonburg Borough where the pipeline will be installed.
The project will consist of converting two existing coal fired boilers to natural gas by partnering with Hunt Marcellus. In order to support the conversion to natural gas, the new three-mile gas pipeline will be constructed to supply the facility.
Officials said due to the savings of the conversion, it will allow the company to invest an additional $12 million into upgrades for the facility over the next three years. In addition, the conversion savings and efficiencies will allow the company to retain its current workforce of 355 full-time jobs.
“The Pipeline Investment Program was created last year as part of the state budget and I am pleased that we will soon be seeing local benefits from the program,” Scarnati said. “This grant will not only help with hastening the deployment of low-cost energy, but will also play an important role in helping to retain a great number of jobs in Elk County.”
Scarnati said the financing was approved at the Jan. 24 Commonwealth Financing Authority meeting in Harrisburg.
The Pipeline Investment Program provides grants to construct the last few miles of natural gas distribution lines to business parks, existing manufacturing and industrial enterprises, which will result in the creation and retention of local jobs. Funds may also be used for acquisition, construction and site preparation costs associated with extending natural gas pipelines.
“Domtar appreciates our long-standing partnership with the Commonwealth,” said Thomas Howard, Domtar’s vice president of government relations. “We are grateful that Senator Scarnati recognizes the value of Domtar and the 438 jobs we provide in Elk and Clearfield counties, as well as the economic benefit provided throughout the entire region.
“Throughout his public service career, his leadership and counsel have been invaluable and have played a significant role with helping to preserve Domtar jobs in Pennsylvania,” added Howard.
