Chlorine Manufacturer in North Vancouver Utilizes BC's Low Power Costs Before Shipping to Texas

Tracks originating at Canexus Chemical plant in a photograph by Megan Stewart

According to a BC Hydro Summary Report, Canexus Chemicals Canada is receiving a reduced rate on power, a major reason that the chemical facility is located in North Vancouver.

The American company produces chlorine and has been located on property underneath the Second Narrows Bridge in North Vancouver owned by the Vancouver Port Authority (known as Port Metro Vancouver) for over 52-years, according to the Port Authority's website.  Canexus states in a website document that the Company's interests in Vancouver are associated with the ability to “cost-effectively distribute its products to customers throughout the continent.” Canexus also refers in the document to “the low cost power source at the North Vancouver facility.”

Power costs in Vancouver are  considerably lower than rates in the United States for Canexus. BC Hydro charges a wholesale rate of three cents per kilowatt for wholesale power users while the United States’ Puget Sound Energy's wholesale rates are double, at six cents per kilowatt.

The company receives these wholesale rates for power.

The company has also chosen to locate all of their facilities in regions that provide the lowest-cost energy rates in North America, the document says. North Vancouver provides the third-cheapest source of energy, according to a graph on the Canexus website, which also lists Ontario and Nanaimo, British Columbia as being top low-cost locations. Most chlorine production companies are located in Canada and then are transported to a distribution centre  located in Texarkana, Texas. Canexus also has a facility in Brazil, where sodium chloride products are produced.

 

Canexus did not respond to a request for a comment.

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