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Nexterra, Kamloops Cellulose Fibers Pulp Mill and Paprican Receive $2.7 Million from SDTC for Lime Kiln Biomass Gasification Project
Vancouver, British Columbia, Canada, 06 February 2007 -- /PRNewswire/ -- Nexterra Energy Corp. (www.nexterra.ca) announced it has signed a CAD 2.7 million contribution agreement with Sustainable Development Technology Canada (SDTC) to support demonstration of a unique application of Nexterra's gasification technology to displace natural gas used to fire lime kilns in kraft pulp mills with a "syngas" biofuel produced by gasifying wood residue.

The SDTC funding will be used to support the demonstration of a full-scale biomass gasification system designed to convert wood waste into synthetic gas. The syngas will displace the natural gas currently used to fire lime kilns in kraft pulp mills. The work is an extension of the previously announced agreement in May 2006 between Nexterra, Weyerhaeuser's Kamloops Cellulose Fibers pulp mill and Paprican, the Pulp and Paper Research Institute of Canada.

Successful implementation of the new gasification system at Kamloops Cellulose Fibers has the potential to reduce natural gas consumption by more than 500,000 gigajoules (GJ) per year, the equivalent amount of natural gas needed to heat 4000 residential homes. This in turn can save the mill several million dollars a year and reduce greenhouse gas emissions by 25,000 metric tons per year. The total cost of the project including the demonstration phase is more than CAD 10 million.

"We are delighted with this news," said Bill Adams, manufacturing services manager at Kamloops Cellulose Fibers. "We have made significant progress toward verifying the performance of Nexterra's gasification technology and remain totally committed to the project. We are confident that this work will result in a cost effective, new standard of clean energy technology that will help us reduce our manufacturing costs and reduce our carbon emissions."

Kamloops Cellulose Fibers is one of the largest northern bleached softwood kraft (NBSK) mills in North America with an annual capacity of 480,000 metric tons. The mill is located in the southern interior of British Columbia and is part of the Weyerhaeuser-Domtar transaction that is expected to be completed in the first quarter of 2007.

"Reducing energy costs, carbon emissions and reliance on fossil fuels remains a top strategic priority for pulp and paper companies in Canada and worldwide," said Tom Browne, program manager, sustainability, at Paprican. "The Nexterra gasification system holds the promise of helping eliminate fossil fuel use in the lime kiln, which is one of the last remaining pulp and paper applications where fossil fuel has historically been the only technically feasible source of heat," he said.

"We have been impressed with the progress Nexterra and Weyerhaeuser's Kamloops Cellulose Fibers mill have made toward verifying the performance of a lime kiln gasification system, and continue to be a strong supporter of the process and the project," Browne said.

"This funding demonstrates SDTC's continued commitment to building Canada's sustainable development technology infrastructure and business opportunities by supporting innovative new clean technologies like Nexterra's gasification systems," said Vicky J. Sharpe, President and CEO, SDTC. "Clean-tech solutions are important for Canada's pulp and paper industry to remain globally competitive."

"We are very pleased to receive SDTC support for our project and business plan," said Jonathan Rhone, president and CEO of Nexterra. "There is tremendous interest in this application of our gasification technology from the pulp and paper industry in North America. Nexterra is fully committed to developing a world-class solution that can be widely replicated."

North America's pulp and paper industry consumes 900 trillion Btu of natural gas and fuel oil each year at a cost of USD 8.0 billion. There are 150 kraft pulp mills in North America, each consuming millions of dollars of natural gas or fuel oil in their lime kilns. Since the mid-1990s, the cost of natural gas has increased by 500%, leaving North America with some of the highest natural gas prices in the world and placing severe competitive pressures on North American forest companies.

About SDTC

Sustainable Development Technology Canada (www.sdtc.ca) is a not-for-profit foundation that finances and supports the development and demonstration of clean technologies - solutions that address issues of climate change and clear air, water, and soil to deliver environmental, economic, and health benefits to Canadians. SDTC fills the void in the innovation chain between research and commercialization - helping clean technology developers move through the development and demonstration phases, in preparation for commercialization.

About Nexterra Energy Corp.

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 "inside-the fence" 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, Canada. For more information, visit www.nexterra.ca.

About Weyerhaeuser

Weyerhaeuser Company (NYSE:WY) , one of the world's largest integrated forest products companies, was incorporated in 1900. In 2005, sales were CAD 27.4 billion (USD 22.7 billion). It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Weyerhaeuser Company Limited, a wholly owned subsidiary, has Exchangeable Shares listed on the Toronto Stock Exchange under the symbol WYL. Additional information about Weyerhaeuser's businesses, products and practices is available at www.weyerhaeuser.com

About Paprican, the Pulp and Paper Research Institute of Canada

Paprican is a leading not-for-profit research and technology institute that provides valuable technology transfer and cost-competitive research addressing both the short-term and strategic needs of its members. Its research programs are driven by the high-priority technical issues of the industry such as product quality and value, cost competitiveness, environment and sustainability. Internationally recognized for excellence, Paprican operates laboratories in Quebec and British Columbia, and is well positioned to offer services to the global pulp and paper industry. For more information, go to www.paprican.ca.


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