SMART Papers Breaks Ground On $30 Million Project to Produce Environmentally Responsible Premium Printing Papers

HAMILTON, OH—May 13, 2008—SMART Papers has begun construction on a new $30 million high-efficiency energy co-generation facility at its manufacturing center here that marks an important first for the North American papermaking industry. By early 2009, SMART Papers will produce all of its own power and begin a transition to 100% cellulosic biomass fuel. By late 2009, all products will be fully carbon neutral and produced 100% fossil fuel free, company officials said.

SMART Papers, which makes premium coated and uncoated printing papers for businesses and consumers, including Fortune 500 companies, said its products will be carbon-neutral because its manufacturing center will be powered by 100% biomass, primarily yard waste as well as industrial wood and fiber waste. Biomass emits no net carbon dioxide because the carbon in the biomass originates from carbon dioxide that was recently in the atmosphere.

The project’s full scope will enable SMART Papers to significantly reduce greenhouse gas emissions at its Hamilton manufacturing facility, located 25 miles northwest of Cincinnati. No food crops will be used, no farmland will be displaced and no timber will be harvested to provide fuel, the company said.

The $30 million investment and drive to achieve full carbon neutrality at SMART Papers comes as the State of Ohio and the U.S. government develop new laws and regulations on carbon emissions. The Ohio Senate and House recently passed legislation, which requires that up to 12.5 percent of the state’s electricity consumption come from renewable sources by 2025. Under the law, half of that must be generated within Ohio.

SMART Papers officials said they are well positioned to play an important role in helping the State of Ohio meet its goal because the company will sell a significant amount of power on the electrical grid. By the end of 2010, all of the power supplied to the regional grid will be carbon neutral—providing a source of 100% “green” energy for businesses and homes throughout Ohio and the Midwest U.S.