We Energies planning 50 MW biomass power plant

Rothschild, Wis., September 2, 2009 — We Energies is planning a $250 million biomass-fueled power plant at Domtar Corp.’s Rothschild, Wisconsin paper mill site.

Wood, waste wood and sawdust will be used to produce 50 megawatts of electricity and will also support Domtar’s sustainable papermaking operations. The project would be funded by We Energies.

Under Wisconsin law, utilities statewide must use renewable energy to meet 10 percent of the electricity needs of retail customers by the year 2015.

The project is expected to create about 400 construction jobs and 150 permanent jobs in the surrounding community, including independent wood suppliers and haulers from northern and central Wisconsin who will secure waste wood for the project.

Wood is a substantial renewable resource that can be used as fuel for producing electricity while reducing greenhouse gas emissions. Local independent contractors secure the waste wood from area forests and transport it to the mill site. Studies indicate that area forests within a 75-mile radius of the Rothschild Mill can support this proposed power plant, and the project could provide a significant opportunity to further improve forest health.

We Energies will file an application for a Certificate of Authority with the Public Service Commission of Wisconsin in early 2010, requesting approval for the biomass plant. If approved, the plant is expected to be completed in the first half of 2013.

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