Resolute Inks Deal To Reduce Carbon Emission In Quebec

Resolute Forest Products Inc. (NYSE:RFP) , in association with turnkey greenhouse project Serres Toundra Inc., recently inked an agreement worth C$7.4 million with the technology firm CO₂ Solutions Inc. to set up carbon capture technology at Resolute's Saint-Félicien pulp mill in Quebec.

Per this agreement, CO₂ Solutions will provide its technical expertise in capturing approximately 30 metric tons of CO₂/day from Resolute's pulp mill. A major portion of the CO₂ will be transported to Serres Toundra's superlative vegetable greenhouse.

This project will be the first of its kind in the pulp and paper industry, helping in the reduction of carbon emission in the neighborhood.

This deal will also support the company’s strategy of balancing the three pillars of its business, namely, the environment, social and economic aspects.

A partnership was forged between Resolute and Serres Toundra greenhouse in 2014. Serres Toundra is a 34-hectare greenhouse located adjacent to Resolute’s pulp mill. The C$100 million project is expected to be completed in 2019. On completion, the Serres Toundra greenhouse will be the largest in Quebec. This project will help provide employment opportunities in the Lac-Saint-Jean region.

Headquartered in Montreal, Canada, Resolute is a leading manufacturer of a diverse range of forest products, which include newsprint, commercial printing papers, market pulp and wood products. In addition, it also owns and operates pulp and paper mills, and wood product facilities spread across the U.S., Canada and South Korea. Alongside, it sells pulpwood, saw timber, and wood chips as well as recycles newspapers and magazines.

Resolute carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include FibriaCelulose S.A. (NYSE:FBR) , Neenah Paper, Inc. (NYSE:NP) and Sappi Limited (OTC:SPPJY) . All three stocks carry a Zacks Rank #2 (Buy).