Cost of New Black Liquor Boondoggle Reaches $1.1 Billion

The cost of the “Son of Black Liquor” giveaway to U.S. pulp and paper companies officially passed $1 billion last week and could eventually grow much larger. A dozen publicly traded pulp manufacturers recently reported actual or expected federal Cellulosic Biofuel Producer Credits (CBPC) totaling $1.1 billion in their annual and quarterly reports.

That number includes only $65 million, so far, for #1 pulp manufacturer International Paper and nothing from #2 Georgia Pacific, which is privately held. Both giants seem likely to join or surpass Packaging Corp. of America, Weyerhaeuser, and Domtar, each of which recorded or expects