Tembec officially inaugurated today a new anaerobic treatment facility which will produce methane biogas and greatly reduce the use of fossil fuels at its high-yield pulp mill in Matane, Québec. Dignitaries from the surrounding region and members of Tembec’s senior management joined together with employees to inaugurate the new facility. This investment was announced January 10, 2011.

Funding for this investment was provided mainly by the Government of Canada with $19.7 million and the Government of Québec with $6.3 million. The overall project represents a total investment of $29 million - $26 million for the anaerobic facility and $3 million for the installation of the new electric boiler.

The project has two main components. The first is a new anaerobic treatment facility, which treats effluent and collects methane gas produced by the treatment process. This biogas will be used as fuel in the mill’s pulp-drying process, in place of the light oils currently used. The second component is the installation of a new electric boiler, which replaces a heavy oil fuelled boiler. These two initiatives together will reduce by approximately 90% the use of oil as fuel sources for the generation of the Matane mill’s various process steam and pulp drying requirements.

“This investment means better environmental, energy and economic performance for our Matane mill,” said James Lopez, President and Chief Executive Officer of Tembec. “By substantially reducing operating costs, this project will help assure the competitive position of our high-yield pulp on the global market.” “Tembec recognizes the support of the Government of Québec and the Government of Canada in the project, and we appreciate their confidence in helping us ensure the future of the mill,” added Mr. Lopez.

The Matane mill, which has 140 employees, exports its high-yield pulp to the United States, France, Italy, Spain, Germany, Korea and China.