Nova Scotia Power files 60MW biomass proposal with NewPage mill

HALIFAX, NS, May 7, 2009 (Press Release) - Nova Scotia Power announced today that it has applied to the Utility and Review Board (UARB) for approval of a power purchase agreement (PPA) for renewable energy from biomass. The proposed project would involve NewPage Port Hawkesbury Corp. and Strait Bio-Gen, which would develop a 60MW biomass-fueled electrical generation facility, taking advantage of existing infrastructure at the NewPage paper mill in Port Hawkesbury. Energy from the project would be sold to Nova Scotia Power.

"Our strategy is to add more diverse supplies of renewable energy to our generation portfolio," said Robin McAdam, Executive VP of Sustainability at Nova Scotia Power. "Adding biomass into our renewable energy plan is a responsible way to complement the intermittent nature of wind power so that we can continue to make clean, renewable energy when the wind is not blowing."

Nova Scotia Power has contracted with a number of wind developers for renewable energy, including 246MW of wind power under contract from independent power producers in Nova Scotia. The company recently purchased the development rights for one of those projects, at Nuttby Mountain, near Truro.

"Biomass presents an immediate opportunity for Strait Bio-Gen and NewPage to begin developing a project that will supply renewable energy to Nova Scotia based on sustainable forestry practices," said Luciano Lisi, President of Strait Bio-Gen.

Producing electricity through biomass presents strong economic development potential for the province, as the industry would employ Nova Scotians to harvest a Nova Scotian resource. The proposed Strait Bio-Gen project represents an injection of tens of millions of dollars per year into the Nova Scotia economy.

Nova Scotia Power, NewPage and Strait Bio-Gen have applied to the UARB for a review of the terms and conditions of the proposed arrangement. The application requests confirmation from the Board that the project is a prudent means of assisting Nova Scotia Power in meeting Nova Scotia's renewable energy standard and lowering emissions. A hearing is scheduled for mid-June.

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