Press ReleasesNippon Paper Group, Inc. Establishes Energy Business Promotion Office

Nippon Paper Group, Inc.

Nippon Paper Group, Inc. (President: Yoshio Haga) is pleased to announce the establishment of the Energy Business Promotion Office on December 1, 2011, within the Technology, Research and Development Division for the promotion of the energy business, such as electric power supply.

Nippon Paper Group has in-house power generators at many of its manufacturing bases because steam, electricity, and other energy sources are used in the process of manufacturing paper, its main product. More than 40% of the power consumed by the Group is non-fossil energy. Moreover, the Group is one of the largest biomass energy consumers in Japan, using non-fossil energy, more than 80% of which is wooden biomass fuel, such as black liquor, which is a byproduct of pulp production, and scrap wood.

In the meantime, the domestic energy picture has changed significantly, reflecting concerns about power failures as a result of the nuclear power plant accident following the Great East Japan Earthquake and the introduction by the government of the renewable energy total buy back system in July 2012.

Nippon Paper Group not only owns in-house power generators across the country, accumulating operational know-how, it also reduced purchases of electricity in the summer of 2011, when the nation was experiencing power shortages, by operating its in-house power generators at full capacity while offering a supply of excess energy using its backup equipment. Moreover, the Group's biomass energy procurement capacity, its vast industrial sites, their locations, and other factors can be used as strengths in promoting the energy business.

In light of these advantages, Nippon Paper Group establishes the Energy Business Promotion Office. With this dedicated organization, the Group will seek to expand its energy business, including the future development of wood energy.