Ohio certifies Smart Papers' 37.8-MW Cincinnati cogeneration power plant as eligible renewable energy facility; decision paves way for papermaker to cut coal use by 50%, provide renewable power to grid by late 2011

HAMILTON, Ohio , December 21, 2010 (press release) – Key ruling puts SMART Papers on track to cut coal usage more than 50,000 tons annually by the end of 2011

The Public Utilities Commission of Ohio has certified SMART Papers as an eligible renewable energy resource generating facility. The company operates a 37.8-megawatt co-generation power plant at its headquarters northwest of Cincinnati.

The state commission’s Dec. 15 certification paves the way for the specialty papermaker to reduce its use of coal by more than 50,000 tons annually—a reduction of up to 50%—and provide an important new source of renewable energy to the State of Ohio and the U.S. Midwest electricity grid by late 2011.

The certification will further SMART Papers’ drive to substantially reduce greenhouse gas emissions as it completes the transition to renewable energy production. All other required state and federal agency permits have been secured.

Cellulosic fuel pellets will be used to replace a large portion of coal used at the co-generation plant, substantially reducing the total amount of fossil fuels consumed by SMART Papers. The pellets are manufactured from non-recyclable paper and biomass materials that traditionally have been directed to landfill.

The company’s co-generation facility produces electricity for its own use. Excess energy is sold to the U.S. Power Transmission Grid and is distributed across Ohio and the central U.S. via the Midwest Independent Transmission System Operator (Midwest ISO).

State of Ohio law requires that at least 25 percent of electricity sold in the state by electric distribution utilities and electric services companies must be generated from alternative energy sources by the year 2025. Under law, at least half of this energy must come from renewable sources.

“The state utility commission’s ruling enables us to help Ohio meet its requirement for renewable energy supply,” said Dan Maheu, president of SMART Papers. “This is a powerful example of how manufacturers can cost-efficiently reduce dependence on fossil fuels—and put excess renewable energy on the U.S. electricity grid.”

The Hamilton papermaking center, in operation since 1893, is where coated printing papers for magazines were invented and first produced. Since the early 1980s, SMART Papers has been a pioneer in the use of recycled waste in its paper products. Today, the company produces premium coated printing and packaging papers with up to 100% post-consumer waste content.

About SMART Papers

Hamilton, Ohio-based SMART Papers is North America’s largest manufacturer and marketer of high quality, environmentally responsible, premium cast-coated and matte-coated papers utilizing a wide range of post-consumer pulps. Its premium post-consumer waste (PCW) papers, used in offset and digital printing as well as consumer packaging, are marketed worldwide.

Brands include Kromekote, Knightkote Matte, SMART Matte and SMART Digital. Branded and specialty paper applications include corporate brochure and identity programs, advertising, annual reports, consumer labels and tags, consumer packaging, stationery, greeting cards, invitations with matching envelopes, direct mail, security papers and more.

All pulp used in papermaking is certified by organizations including the Forest Stewardship Council (FSC), the Sustainable Forestry Initiative (SFI), the Programme for the Endorsement of Forest Certification (PEFC).

The company markets its environmental manufactured matte-coated and cast-coated brands to customers including specialty and technical converters, OEMs, label manufacturers, laminators, packaging printers, gift and box wrap printers and greeting card companies.

Mohawk Fine Papers is the marketer of SMART Papers products including Kromekote, Knightkote Matte and SMART Digital premium coated papers through the North American paper merchant channel. These market-leading brands are widely used and specified by commercial printers, corporate in-plant printers and graphic designers. More information about Mohawk is at www.mohawkpaper.com.

Please visit www.smartpapers.com or call 800-443-9773 for more information. Customers may also order papers in any quantity at www.mohawkpaperstore.com .

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