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HAMILTON — SMART Papers has started construction on a $30 million high-efficiency energy facility that company officials said will allow it to produce all of its products using its own "green" steam power.

The facility will not require new employees, but the company will add 50 positions, effective immediately, as the result of a recent acquisition of seven premium writing paper brands from Montreal-based Domtar Corp.

"We're going to be the only (paper producer) that we know of that will be completely carbon neutral by producing our own power through steam," said Dan Mahue, president and chief operating officer of SMART. "It's a very unique environmental position we are going to put ourselves in when it's completed in 2009."

The facility will be co-generation, meaning it will use biomass fuel produced from yard waste, industrial wood and fiber waste.

The company buys the fuel commercially, but will consider acquiring some of it locally after the system is completed, Mahue said.

As a result, the company will cease to emit carbon dioxide — the number one greenhouse gas — since biomass uses carbon that was recently released into the atmosphere to create power, he said.

Construction of the 40-megawatt system has already begun in SMART's B Street facility parking lot. Mahue said the company will operate six turbines and three condensers, as well as a cooling tower and auxiliary equipment.

Company officials said they expect to begin producing 100 percent of their own power after construction is completed in early 2009, with all products being produced fossil fuel-free by the end of that year. SMART plans to begin selling its excess power made in the facility in 2010, Mahue said.

Previously, SMART produced a large portion of its own power and purchased the rest from Duke Energy Ohio, Mahue said.

SMART's investment in the power facility comes after the Ohio legislature passed a law requiring that up to 12.5 percent of the state's electricity consumption come from renewable sources by 2025. Under the law, half of that must be generated within Ohio.

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

Honeywell International supplied the power system. Dayton-based Shook Construction will complete the building work, Mahue said.

SMART Facts

• Hamilton-based company has a 115-year-old manufacturing center.
• Company has 550 employees.
• Company makes premium coated and uncoated papers for products such as magazines.
• The new power system Encompasses a $30 million company investment.
• Includes six turbines, three condensers and one cooling tower.
• Will produce 100 percent of SMART's electricity using steam produced from biomass fuel.
• Biomass produces zero carbon dioxide emissions.
• Project to be completed in 2009.

Source: SMART Papers

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