November 10, 2004

Launch of New Biomass Boiler at Ishinomaki Mill
- Reducing CO2 emissions from the burning of fossil fuels by 120,000 tons per year -

Nippon Paper Industries Co., Ltd.

Nippon Paper Industries Co., Ltd. (President: Takahiko Miyoshi) has decided to construct a circulating fluidized bed boiler using refused woodchips as main fuel. The Company will invest an approximate total of 5.3 billion yen in the boiler. Construction work is due to commence in April 2005 and the boiler is scheduled to begin commercial operation in October 2006.
This plant has been certified as "biomass power generation" in the project being run by the Ministry of Economy, Trade and Industry to support new energy businesses in fiscal 2004. Dramatically reducing heavy oil consumption, the project is expected to reduce emissions of carbon dioxide from fossil fuels by 120,000 metric tons per year, which corresponds to 10% of the yearly emissions from Ishinomaki Mill alone and 2% of that from the whole group.

Ishinomaki Mill today primarily uses a pulverized coal boiler and a recovery boiler powered by black liquor to produce steam used in the manufacturing process and power generation. But it also uses a heavy oil boiler to supplement steam production. The recent decision aimed at replacing the heavy oil boiler with a biomass boiler will allow the Mill to use heavy oil as a mere ancillary fuel. It currently consumes approximately 66,000 kiloliters of heavy oil per year. This consumption will fall about 83%.
The new biomass boiler will consume around 150,000 metric tons of refused woodchips as its major fuel. It will respond to society's demands for waste disposal and will minimize the final waste as it will burn more paper sludge and combustible waste, the disposal of which has been outsourced.

Following the "Charter on the Environment by Nippon Paper Group" for sustainable corporate activities in harmony with nature, Nippon Paper Industries has moved forward with the Tree Farm overseas afforestation projects to ensure sustainable raw materials procurement and with the Zero Discharge Program designed to minimize waste emission. As a core member of the Nippon Paper Group, Nippon Paper Industries will further promote the activities in the programs for harmony with the environment to further contribute to the sustainable development of the society.