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Domtar Celebrates Start of New Turbine Generator

Montreal, Quebec, Canada, 20 January 2011 -- /PRNewswire/ -- Domtar Corporation (NYSE/TSX: UFS) celebrated the start-up of its newly installed 50 megawatt biofueled steam turbine generator at its Marlboro (Bennettsville) mill in South Carolina today. Domtar invested approximately $40 million in 2010 to complete this project. Now fully operational, the new turbine has made the mill more energy efficient.

Domtar has entered into a 15-year agreement with Santee Cooper, South Carolina's state-owned electric company, for the purchase of up to 50 megawatts of green power. The renewable energy generated by the turbine would be enough to power roughly 31,000 South Carolina homes.

The state of South Carolina played a significant role in the success of this project. To celebrate the start-up, Domtar organized a "breaker-throw" event at the mill this morning, which included the participation of several state dignitaries and Domtar executives. 

Domtar has been long committed to sustainable business practices and has implemented energy efficiency programs at all of its facilities to help reduce the effect of its operations on the environment. Since 2002, Domtar's increased reliance on lower-emitting biomass as a fuel source has resulted in a 20% reduction in greenhouse gas emissions intensity. Domtar's self-generation of electricity is at approximately 67%, which represents a 26% increase since 2002. Domtar's use of renewable energy stands at approximately 74% of total energy use, which represents an 18% increase since 2002.

Domtar Corporation (NYSE/TSX:UFS) is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade, fluff, and specialty pulp. The company designs, manufactures, markets and distributes a wide range of business, commercial printing, publishing, converting, and specialty papers. Domtar owns and operates Domtar Distribution Group, an extensive network of strategically located paper distribution facilities. The company employs approximately 8500 people. To learn more, visit www.domtar.com.



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