SMART Papers is building a new $30-million high-efficiency energy co-generation facility at its manufacturing center in Hamilton, OH, that, it says, marks an important first for the North American papermaking industry.

By early 2009, SMART Papers will produce all of its own power and begin a move to the use of 100% cellulosic biomass fuel. By late 2009, all products will be fully carbon neutral and produced 100% fossil fuel free, company officials said.

SMART Papers, which makes premium coated and uncoated printing papers for businesses and consumers, said its products will be carbon-neutral because the Hamilton mill will be powered by 100% biomass, primarily yard waste as well as industrial wood and fiber waste. Biomass emits no net carbon dioxide because the carbon in the biomass originates from carbon dioxide that was recently in the atmosphere.

The project's full scope will enable SMART Papers to reduce greenhouse gas emissions at the plant, situated 25 miles northwest of Cincinnati. No food crops will be used, no farmland will be displaced and no timber will be harvested to provide fuel, the company said.

The $30-million investment and drive to achieve full carbon neutrality at SMART Papers comes as the State of Ohio and the US government develop new laws and regulations on carbon emissions. The Ohio Senate and House recently passed legislation requiring that up to 12.5% of the state's electricity consumption must come from renewable sources by 2025. Under the law, half of that must be generated within Ohio.

SMART Papers officials said the company will sell a significant amount of power on the electrical grid. By the end of 2010, all of the power supplied to the regional grid will be carbon neutral - providing a source of 100% "green" energy for businesses and homes throughout Ohio and the Midwest US.

Project details. The 40-MW co-generation system will produce electricity and steam to operate the mill; it consists of four turbines, two condensers, a cooling tower and auxiliary equipment.

Honeywell International supplied the cogeneration system and is supervising project construction, which began in late April and is expected to be complete by Spring 2009. The company has received all necessary permits for the project.

The facility, one of the oldest continuously operating paper mills in the US, is where coated magazine papers, coated two-side papers and ultra-premium cast-coated printing papers were invented and first produced.

Said SMART Papers chairman Tim Needham. "This is a major environmental advance in papermakingÑwe have set a new standard for environmentally responsible printing papers. The production of these papers will leave the lightest environmental footprint of any premium coated or uncoated printing paper produced in North America."

SMART Papers currently uses up to 100% post-consumer waste to produce many of its premium coated and uncoated papers. It also has Forest Stewardship Council (FSC) certification for the majority of its brands.

"This move to carbon-neutral production is the centerpiece of our environmental and energy strategies. It enables us to have a future that is completely independent of volatile energy markets," said Dan Maheu, president and COO of SMART Papers. "We will reduce production costs, make carbon-neutral papers and greatly reduce our greenhouse gas emissions. We will also be a positive contributor to the green power needs of Ohio and the Midwest."

Maheu said SMART Papers has bought and sold power from the local utility for the last 10 years. But the current power generation facility at the mill did not maximize return of its fuel inputs. New turbines were needed to substantially increase the amount of electrical energy that could be produced.

The biomass fuel used in the co-generation facility is made up of short-fiber cellulosic waste material that is typically landfilled. Biomass is widely available in the region. Ohio ranks No. 7 nationwide in the availability of biomass stocks, according to the US Department of Energy.

SMART Papers said the project will generate carbon credits that can be bought and sold on the open market.

SMART Papers makes premium cast coated, matte coated and uncoated text, cover and writing papers. The company markets a wide range of Forest Stewardship Council (FSC) certified premium papers in North America, Europe and Asia. It also sells papers directly to consumers.

The Hamilton mill is a zero process waste discharge facility. All products are process chlorine free, elemental chlorine free and acid free. All pulp is certified by one or more of the following third-party organizations: the Forest Stewardship Council (FSC); the Sustainable Forestry Initiative (SFI); the Programme for the Endorsement of Forest Certification (PEFC); the Canadian Standards Association (CSA).