Fortress Paper reaches energy agreement with Hydro Quebec for green power from Thurso mill

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Fortress Paper reaches energy agreement with Hydro Quebec for green power from Thurso mill

May 07, 2010 - 10:47
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VANCOUVER, BC, May 6, 2010 (Press Release) -Fortress Paper Ltd. announced today that it has signed, through its wholly-owned subsidiary, Fortress Specialty Cellulose Inc. ("FSC"), an Energy Supply Agreement (the "Agreement") with Hydro Québec for the sale of green electricity to be produced at the Thurso Mill upon completion of a biomass-based cogeneration facility.

Under the Agreement, the Company will construct a cogeneration facility to provide net 18.8 megawatts of green power to Hydro Québec over a 15 year term, with deliveries estimated to commence in the fourth quarter of 2012.

Chadwick Wasilenkoff, CEO of Fortress Paper, states, "The signing of the Agreement represents an important step in achieving our business plan at the Thurso Mill, which includes the building of a cogeneration plant that produces green electricity that in turn will ultimately benefit Québec residents. We believe that the results of this partnership with Hydro Québec will be beneficial to the environment and the economy of Québec, as well as providing net energy savings (income) to Fortress Paper."

The Agreement is subject to final approval by the Régie de l'énergie in Québec which is expected to be received in the third quarter of 2010.