Energy

Bowater is committed to reducing the use of fossil fuels, fully utilizing our wood resource and finding alternative uses for our residuals to minimize landfilling. In 2005, Bowater was 41.2% self-sufficient for its energy needs.

Bowater continues to place a high priority on energy reduction projects. In 2005, we invested more than $31 million in 18 energy reduction capital projects. In 2006, Bowater will continue to favor projects that make us more energy efficient and reduce our greenhouse gas emissions.

The following are examples of energy reduction initiatives implemented at specific mills in the last several years:

• Since 2003, overall energy consumptions at our paper mills has been reduced by 5% on a million BTU per metric ton basis.
  
  
• Between 2000 and 2005, the Mersey mill improved its energy efficiency, reducing electricity usage per metric ton by more than 8%.
  
  
• Fossil fuels are not used to provide steam at the Mersey mill.  Instead the mill produces steam from waste heat generated in the thermo-mechanical pulp refining process and purchases steam from a co-generation power plant fueled by bark and wood waste from Bowater's Oakhill sawmill and other privately owned sawmills.
  
  
• At Gatineau, we have completed a new 23 megawatts co-generation project with the startup of a new steam turbine in April. This capital project allows the facility to sell electricity to Hydro-Quebec. This electricity is generated from "green energy" or biomass from the mill’s biomass boiler.
  
  
• Since 2000, Calhoun, Ponderay, Dolbeau, Dalhousie and Thunder Bay have significantly reduced greenhouse gas emissions by switching from fossil fuel to biomass combustion. Biomass boilers convert materials that had previously gone to landfills to steam and electricity.
  
  
• In November 2001, Ponderay Newsprint started up a fluidized bed boiler burning wood waste. This allowed a reduction in fossil fuel consumption by over 70%.
  
  
• The Dolbeau mill produces steam and electricity by burning 550,000 metric tons per year of biomass produced by Bowater sawmills and other sawmills within a 50-mile radius. Ninety-four percent (94%) of the energy supplied for paper production comes from biomass. Biomass cogeneration satisfies 21.5% of the mill's electricity requirements. The balance of electricity is supplied from hydroelectric power plants.
  
  
• At Catawba, more than 90% of the on-site generated electricity comes from biomass. More than 9% of the remaining electricity used at Catawba is supplied by hydroelectric power plants.
  
  
• The Thunder Bay operation produces steam and electricity by burning 550,000 metric tons per year of biomass from local sawmills. Also, the No.6 Power Boiler is being modified to allow increased use of biomass to displace natural gas.