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Arauco Wood Pulp Mill Expands Energy Capacity
Santiago, Chili, 01 June 2008 - During its last session, Arauco’s board approved a USD 70 million investment to improve the energy supply system in Arauco wood pulp mill in the Bío Bío Region.

The project calls for installation of a fourth high pressure power boiler with a production capacity of 210 tons/h of vapor, which will begin to operate during the third trimester of 2009. Also, the plan considers a turbo cogeneration generator with a 25 MW capacity, which will begin to operate by the end of 2009.

This project will be carried out within the context of the Clean Development Mechanism of the Kyoto Protocol and will enable the company to generate neutral energy, replacing other energy sources of fossil origin for electric generation. With the new installations, Arauco wood pulp mill will increase its contribution to the national grid up to a total of 24 MW, while satisfying its own energy and vapor requirements.

Arauco generates energy from forestry biomass and powers its production operations through it own electric generation units, which turns the company into a viable alternative for the diversification of Chile’s energetic matrix, and a pioneering company in the use of this type of biomass.

To date, Arauco owns nine energy generating facilities with an installed capacity of 538 MW, enabling it to inject into the Interconnected Central System—the national energy grid up to 160 MW, which in terms of potency is equivalent to that simultaneously required by cities such as Talca, Chillán, and Valdivia.

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