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Domtar to Move Ahead on Two Energy Projects at Kamloops Pulp Mill

April 8, 2010 - Domtar said that it will move forward with two projects to improve energy conservation, increase renewable power generation and reduce particulate emissions at its Kamloops, British Columbia, Canada pulp mill. The capital investment of CDN$57.6 million will be entirely funded by credits received from the Government of Canada's Pulp and Paper Green Transformation Program.

"We welcome and appreciate the support we have received from Natural Resources Canada under this program," said Eric Ashby, general manager of the Domtar Kamloops mill.

"The funding for these projects, together with support from BC Hydro's "Integrated Power Offer" for industrial customers, were instrumental for Domtar in moving forward with these important improvements," Ashby said.

Domtar said the first phase of work related to these projects is expected to begin in late May 2010, during the mill's annual maintenance shutdown.

Domtar said that it was allocated credits totaling CDN$143 million dollars for investments aimed at improving energy efficiency and environmental performance under the Pulp and Paper Green Transformation Program. The company owns and operates a total of four pulp and paper mills in Canada, all eligible for this program.

Domtar is a participant in BC Hydro's Integrated Power Offer which promotes investment in energy efficiency and renewable energy generation.

SOURCE: Domtar Corp.




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