January 17, 2006

Power Generation Plants to be Installed
at Asahikawa, Iwanuma, Tohoku and Yoshinaga Subordinated Companies
- Heavy oil consumption to be cut by 250,000 kiloliters. Investment effect totaling 8.2 billion yen -

Nippon Paper Group

Nippon Paper Group is pleased to announce that it has resolved to introduce power generation plants running primarily on new energy such as biomass fuel at four of its subordinated companies; Nippon Paper Industries Asahikawa Mill (Asahikawa, Hokkaido), Nippon Paper Industries Iwanuma Mill (Iwanuma, Miyagi Prefecture), Nippon Daishowa Paperboard Tohoku (Akita, Akita Prefecture) and Nippon Daishowa Paperboard Yoshinaga (Fuji, Shizuoka Prefecture).
Location Capital Investment Scheduled Completion
Nippon Paper Industries Asahikawa Mill 6.9 billion yen      September 2008
Nippon Paper Industries Iwanuma Mill 11.5 billion yen      November 2007
Nippon Daishowa Paperboard Tohoku 5.9 billion yen      April 2008
Nippon Daishowa Paperboard Yoshinaga 6.7 billion yen      April 2008
Based on a total capital investment of 31 billion yen, we expect to see an investment effect totaling 8.2 billion yen by cutting consumption of heavy oil, the price of which is currently soaring, by 250,000 kiloliters a year. By using the likes of scrap wood, scrap tires and RPF as the main fuel, we also expect to cut fossil fuel-derived CO2 emissions by 240,000 tons a year, equivalent to 3% of total emissions for the entire Nippon Paper Group.
To respond to the demands of society for reduced greenhouse gas emissions and the effective use of waste products and to stabilize profits, the Nippon Paper Group will continue to make every effort to replace its existing heavy oil boilers with waste fuel boilers that run primarily on the likes of scrap wood, scrap tires and RPF and become an oil-less organization in the future.