New Westminster, British Columbia, Canada, 19 November 2008 -- /PRNewswire/ -- Nexterra Energy Corp. (www.nexterra.ca) has been selected by Kruger Products Ltd. to supply a biomass gasification system for its tissue mill in New Westminster, British Columbia. The new system will be the first of its kind in the pulp and paper industry.

Nexterra's turnkey gasification system will convert locally sourced wood residue into clean burning "syngas" that will be fired directly into a boiler in place of natural gas. The Kruger installation will produce 40,000 lbs/hour of process steam and displace approximately 445,000 gigajoules (GJs) of natural gas annually. This is equivalent to the amount of natural gas used to heat 3500 homes in Canada for a year.

Displacing this amount of natural gas with syngas made from wood fuel will lower the mill's energy costs by millions of dollars a year, making the mill less reliant on fossil fuels. It also will reduce greenhouse gas emissions from the plant by more than 22,000 metric tons per year, the equivalent of removing nearly 5500 cars off Canadian roads.

"Kruger Products has taken a leadership role in incorporating green technology in our business practices for 20 years," said Mario Gosselin, COO, Kruger Products Ltd. "Our goal is to be North America's foremost provider of quality tissue products that embrace a commitment to sustainability for future generations. Our new biomass gasification system brings us closer to achieving our goal."

"Our New Westminster mill is situated in an urban area, so we needed the cleanest technology available, and in a challenging economic climate, we also needed the most cost-competitive," said Frank van Biesen, VP Technology, Kruger Products Ltd. "Nexterra's biomass gasification system addresses both challenges, significantly reducing both greenhouse gas emissions and energy costs."

Kruger, Nexterra, and FPInnovations have formed a consortium to build the new system, the first commercial demonstration of Nexterra's direct fired gasification solution. The project has received support from Natural Resources Canada (NRCan), the British Columbia Innovative Clean Energy (ICE) Fund, and Ethanol BC.

Earlier this year, Nexterra announced the successful completion of a two-year testing program to confirm that direct firing of syngas can displace up to 100% of the fossil fuels in industrial boilers.

Advancements to Nexterra's gasification technology makes the switch from fossil fuels to syngas an attractive option for many of North America's pulp and paper mills and other industrial sites. Nexterra's direct fired gasification system is a platform technology that can be used in many industrial applications. Installing the technology at other industrial sites could result in an estimated 200,000 metric tons of greenhouse gas emission reductions in British Columbia annually by 2020.

Kruger Products, a wholly owned subsidiary of Kruger Inc., is Canada's leading tissue manufacturer. Founded in 1904, Kruger Inc. is a major producer of publication papers, tissue, lumber and other wood products, corrugated cartons from recycled fibers, green and renewable energy, and wines and spirits. The company is also a leader in paper and paperboard recycling in North America. Kruger operates facilities in Quebec, Ontario, Alberta, British Columbia, Newfoundland and Labrador, in the United States and the United Kingdom and has 9000 employees.

Nexterra Energy is a leading developer and supplier of advanced gasification systems that enable customers to self-generate clean, low cost heat and/or power using waste fuels at institutional and industrial facilities. Nexterra gasification systems provide a unique combination of attributes including design simplicity, reliability, versatility, ultra-low emissions, low cost, and full automation to provide customers with a superior value proposition compared to conventional solutions. Nexterra is a private company based in Vancouver, British Columbia. For more information, visit www.nexterra.ca.