Pulp- and Paperindustry

Mississippi could become the first place in the world where simple woodchips are turned into a commercial crude oil substitute.

The “Son of Black Liquor” tax credits will probably cost American taxpayers hundreds of millions, if not billions, of additional dollars, but Congress might grab the money without paper manufacturers getting a dime.

Seven publicly traded paper companies have estimated that they will net about $570 million from the IRS’ recent ruling that made black liquor eligible for Cellulosic Biofuel Producer credits (CBPC), reports the Press-Register of Mobile, Alabama. Leading the way are Weyerhaeuser with $240 million (pre-tax) and Domtar with $200 million.

The other 14 publicly traded producers of black liquor, including the largest (International Paper), have not released such projections, partly because of uncertainty about exactly what the June 28 ruling means. (See Pulp Manufacturers Scratching Their Heads Over Son of Black Liquor Ruling for more information about these uncertainties.)

Meanwhile, the IRS’ “generosity” toward companies that produce, and burn, black liquor as part of their pulp-making operations has caught the eye of Congress, writes Jeremiah Coder for Tax Analysts. “The agency’s administrative largesse appears to be prompting members of Congress to consider legislation to retroactively disallow biofuel credits for black liquor claims.”

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In 2009, the UNECE region (which includes Europe, North America and the CIS) experienced an 11.6% fall in consumption of wood and paper products, the largest year-on-year drop since the oil crisis of the 1970s. This is a key conclusion of the Forest Products Annual Market Review 2009-2010 jointly published by the UNECE and FAO earlier this month. 
 

A strong performance for its Europe & International division and improving conditions in its South Africa division have led to paper and packaging group Mondi reporting interim headline earnings a share of €0,24 a share.

This compared to a headline loss a share of €0,01 a share in the six months ended June 30, 2009.

Profit from continuing operations rose to €135-million in the six months ended June 30, 2010, compared with a loss of €24-million the year before.

SANTIAGO -(Dow Jones)- Increasing demand from China and other emerging Asian markets will drive Chile's forestry industry in coming years, said a panel of industry executives Tuesday.

Chile's forestry sector, which produces wood boards, plywood and pulp, accounts for 8% of global forestry exports. It is also the Andean nation's second-largest exporting industry, just behind mining, and contributes 3% of the country's gross domestic product.