Port Hawkesbury Biomass Co-Generation Project Proceeding

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Port Hawkesbury Biomass Co-Generation Project Proceeding

November 8, 2010

Halifax, NS – Nova Scotia Power and NewPage Port Hawkesbury are proceeding with the 60-megawatt biomass co-generation facility recently approved by the Nova Scotia Utility & Review Board. The sale of certain mill assets is expected to close in the near term. Project planning, engineering and procurement work have been ramped up in the past few weeks recognizing the need to have the plant in service in early 2013.

“This development in cooperation with our largest customer provides benefits for all ratepayers,” said Robin McAdam, Executive Vice President, Sustainability for NS Power. “It creates and protects jobs in Nova Scotia, redirects spending on fuel from foreign suppliers to Nova Scotians, and helps meet our renewable energy goals. I want to emphasize NS Power’s commitment to ensuring that sustainable forestry management practices are used in the fuel supply process.”

“The new biomass facility is important for NewPage, for the Port Hawkesbury Mill and for rural Nova Scotia”, said Bill Stewart, Director, Woodlands and Strategic Initiatives, NewPage Port Hawkesbury. “In addition to supporting the local economy, it helps our mill remain a model for sustainable operation.”

The $208 million biomass project is expected to create an estimated 150 new jobs in Northern Nova Scotia, primarily in the forestry sector, and approximately 50 person-years of employment will also be created during the construction phase. The co-generation facility will produce about 400 gigawatt hours of energy a year – or about 3% of Nova Scotia’s total electricity requirements.

NewPage is responsible for the construction and operation of the co-generation facility as well as the fuel supply. Biomass is one of Nova Scotia’s options for renewable energy, as outlined in the Renewable Electricity plan. Only ‘stem wood’ will be used to make electricity. Tree stumps, tops and branches will not be removed from the forest floor because they’re necessary to restore nutrients in the soil.

This news release contains forward looking information. Actual future results may differ materially.

About NewPage
The NewPage Port Hawkesbury Mill is located in Point Tupper, Richmond County, has operated in Nova Scotia since the early 1960s. Today, the Port Hawkesbury Mill has the capacity to produce 190 000 tonnes of standard and improved newsprint and 360 000 tonnes of supercalendered paper for the catalogue and magazine paper markets. The company’s Woodlands Unit currently manages approximately 600,000 hectares of Crown land in the seven  eastern counties and an additional 20,020 hectares of company owned land.

NewPage is an indirect wholly-owned subsidiary of NewPage Corporation. Headquartered in Miamisburg, Ohio, NewPage Corporation is the largest coated paper manufacturer in North America, based on production capacity, with $3.1 billion in net sales for the year ended December 31, 2009. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia.