Mercer International, a pulp manufacturing company, has received confirmation from BC Hydro that all required documentation has been completed and filed pursuant to the terms of the energy purchase agreement (EPA) with the company's Celgar mill.

With the confirmation, the company’s Celgar Green Energy project has received commercial operating status from BC Hydro, and all power generation after 27 September 2010 will be recognized at Bioenergy rates.

Pursuant to the terms of the EPA, the company will supply approximately 238,000MWh of electrical energy annually to BC Hydro for 10 years.

The Celgar Green Energy project included the installation of a 48MW condensing turbine, bringing Celgar’s installed annual generating capacity of green energy up to 100MW.

The project has been funded for the most part through the Canadian government’s Pulp and Paper Green Transformation Program.