Domtar granted $24.8 million in gov't funds for energy efficiency projects at Quebec paper mill

MONTREAL, Jan. 6, 2011 (CNW) - Domtar Corporation announced today that it will be implementing two capital projects to improve the energy efficiency of its Windsor, Quebec mill. The first will make the biomass boiler more energy efficient so that it can burn more biomass and reduce its consumption of natural gas. The second will reduce the amount of steam used by its paper machines. The capital expenditures for these two projects will amount to CDN$24.8 million, which will be funded entirely by credits received under the Government of Canada's Pulp and Paper Green Transformation Program.

"We are proud of these two projects which, in addition to improving our energy efficiency, will allow us to make an environmental contribution to the region," said Martin Lorrion, General Manager of the Domtar Windsor mill.

The two projects will reduce the Domtar Windsor mill's consumption of natural gas by 17 million cubic metres a year and its greenhouse gas emissions by more than 9% per year. The projects will be completed by March 2012.

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