The APC Paper Co. of Claremont announced Thursday that it is converting from oil to natural gas that will be purchased from NG Advantage, a Vermont-based company that is part of an agreement to build a new natural gas facility in Pembroke.
The Pembroke facility is expected to open this spring.
APC officials said they hope that by converting to natural gas they will not only save money, but will also help save the environment by removing the greenhouse gases that come with burning oil.
“We burned oil for a long time, and oil prices have gone through the roof, but we are looking at a $600,000 a year savings (by converting to natural gas). It’s a very important savings for us,” said Frank Tarantino, president of APC.
APC will replace 1½ million gallons of oil with the energy equivalent of natural gas from NG Advantage at 70 percent of the cost, according to Tom Evslin, chairman and CEO for NG Advantage.
“And natural gas is much cleaner burning,” Evslin said. “Each year this agreement will save 11 million pounds of carbon dioxide, 373,000 pounds of sulfur dioxide and 63,000 pounds of nitrous oxides from going into the air,” he said.
He added that the current cost for industrial oil ranges from about $3 to $3.30 per gallon.
APC Paper manufactures paper that is recycled from corrugated cartons and newspapers. With 60 employees, manufacturing runs 24 hours a day, seven days a week, producing 35,000 tons of paper. The paper is then used in the building, fast food and packaging industries.
“APC is committed to producing innovative products that are environmentally friendly. Fuel for our process has been the only area we could not improve,” Tarantino said.
Evslin said the deal will allow APC to be more competitive with companies that operate close to a natural gas pipeline, while at the same time signifying that New Hampshire will be a strong market for NG.
“Only a relatively small part of the state has the benefit of being on a natural gas pipeline, and for energy-intensive industries away from the pipeline, like APC, we can level the playing field by helping them keep their energy costs down,” Evslin said.
NG Advantage specializes in the delivery of natural gas and owns and operates a facility in Milton, Vt. Under its agreement with Clean Energy, a company founded by Texas billionaire T. Boone Pickens, NG has agreed to a 10-year contract to purchase natural gas from the Pembroke facility, thereby generating a guaranteed and consistent revenue stream.
Until the new Pembroke facility comes online, expected for March or April, Evslin said that deliveries to APC will be handled by its Milton facility.
Along with offering natural gas to the industrial sector, Evslin said that NG would also like to work with municipalities, hospitals and schools.