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Natural Resources Canada
June 4, 2010

Government of Canada Invests in Transformation and Environmental Improvements at the Domtar Espanola Mill

ESPANOLA, ONTARIO — Domtar Corporation, North America’s largest integrated manufacturer and marketer of uncoated freesheet paper, is improving its environmental performance and contributing to a more sustainable pulp and paper industry in Canada with help from a $995,000 investment by the Government of Canada.

Domtar’s Espanola mill will receive funding under the Pulp and Paper Green Transformation Program (PPGTP) to install a refurbished wood waste grinder that will allow the mill to process bark more effectively for the production of renewable energy.

“This project is part of a transformation that is taking place in Canada’s forest industry,” said the Honourable Christian Paradis, Minister of Natural Resources. “The Green Transformation Program is helping Canada’s pulp and paper sector become more environmentally sustainable by supporting investments in green technologies. This investment is also increasing the mill’s capacity to improve its environmental performance and produce clean energy, while providing important forest products for consumers.”

Domtar is one of 24 pulp and paper companies across Canada that qualified for credits under the $1-billion program, based on their 2009 production levels of black liquor, a liquid by-product of the pulping process used to generate heat and power.

The refurbished equipment will enable the Espanola mill to grind more bark with greater efficiency and produce a finer bark product that burns better, eliminating the need for secondary grinding of bark, which is currently done by a diesel-powered portable grinder. In turn, the mill will eliminate the consumption of diesel fuel associated with the portable grinder and displace consumption of natural gas by generating more renewable energy to power the facility.

These operational efficiencies will help the mill reduce its greenhouse gas emissions and meet market demand for sustainably manufactured pulp and paper products.

Domtar has a history of environmental stewardship — supporting Canada’s status as a world leader in sustainable forest management. In 2002, Domtar became the first major North American paper company to achieve Forest Stewardship Council (FSC) certification. In addition, Domtar also certifies its forests through Canadian Standards Association (CSA) and Sustainable Forest Initiative (SFI) certification systems. This leadership continues with today’s PPGTP funding announcement to support upgrades to the Espanola mill.

The Pulp and Paper Green Transformation Program complements initiatives that are being delivered under Canada’s Economic Action Plan to sustain and improve the forest industry in Canada. Budget 2010: Leading the Way on Jobs and Growth is delivering $100 million over four years to support the development, commercialization and implementation of advanced technologies in the forest sector — helping create a world-class industry able to compete in the clean energy economy of tomorrow.

In addition, the Government of Canada has committed $170 million to assist the development of next-generation forest products and expand global markets for Canadian forest products. This funding includes $40 million to develop pilot-scale demonstrations under the Transformative Technologies Program.


Domtar’s mill in Espanola, Ontario, will receive $995,000 under the federal Pulp and Paper Green Transformation Program for a capital improvement project. The project is designed to generate more clean energy from wood waste while reducing the mill’s reliance on fossil fuels and lowering greenhouse gas emissions.

Media may contact:

Mary-Ann Dewey-Plante
Press Secretary
Office of the Minister
Natural Resources Canada
613-996-2007 or
613-218-6961 (mobile)


Media Relations
Natural Resources Canada

The general public may contact:

Mon.–Fri., 8:30 a.m.–4:30 p.m. EDT
Telephone: 613-995-0947
TTY: 613-996-4397
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The following media backgrounders are available at

  1. Government of Canada Supporting Environmental Improvements at Domtar Espanola
  2. Federal Assistance for Canada’s Forest Sector and Communities

NRCan's news releases and backgrounders are available at