Nippon Paper Industries Co., Ltd. (President: Masatomo Nakamura) is pleased to announce that it has resolved to introduce biomass power generation plant, which mainly uses scrap wood and refuse paper & plastic fuel (RPF) as fuel, to Fuji Mill (Fuji, Shizuoka Prefecture) and Iwakuni Mill (Iwakuni, Yamaguchi Prefecture). This decision follows the introduction of the power plants at Nakoso Mill, where the power plant has been in operation since October 2004, and at Ishinomaki Mill, which is scheduled to put its power plant into operation in October 2006. These two earlier installations were previously announced.
With a capital investment of 15.4 billion yen, Nippon Paper Industries will see the setup completed in October 2007 at Fuji Mill and in February 2008 at Iwakuni Mill.
Adopting this system will slash the consumption of heavy oil, the price of which is now soaring, to reduce annual fuel costs by 5.2 billion yen. At the same time, it will cut fossil fuel-derived CO2 emissions by 480,000 metric tons annually. This decrement equals 5% of the total emission of the entire Nippon Paper Group.

Although coal boilers and recovery boilers running on black liquor generated from the pulp manufacturing process are chiefly used to produce the steam used in the manufacturing process and power generation in mills, heavy oil boilers are also used in some mills. The above introduction replaces existing heavy oil boilers at the two mills with biomass boilers to cut the yearly heavy oil consumption by 190,000 kiloliters.
The biomass boilers to be set up consume 260,000 metric tons of scrap wood and 70,000 metric tons of RPF per year, as major fuels to meet community demands for the effective use of waste.

As a core member of the Nippon Paper Group, Nippon Paper Industries has been committed to sustainable business activities in harmony with nature, in accordance with the Group's Charter on the Environment. To achieve very substantial reductions of fossil fuel derived CO2 emission, it will be making use of biomass fuel to push forward with its initiative to reduce heavy oil consumption to zero, thereby making a further contribution to the sustainable development of the society.