“Forest sustainability has long been a hallmark of Domtar’s operations in Rothschild, and we’re delighted to tap into this expertise as we expand our production of renewable energy,” We Energies Chairman, President and Chief Executive Officer Gale Klappa said.

Domtar’s President and Chief Executive Officer John D Williams said “With this partnership with We Energies we have the potential to create a real win-win situation by bringing jobs to the community, improving our mill’s competitiveness and providing more green power to the State of Wisconsin.”

Under Wisconsin law, utilities statewide must use renewable energy to meet 10% 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.

The proposed construction of this steam plant will help improve the Domtar Rothschild mill’s energy efficiency by providing access to more renewable energy sources and virtually eliminating its use of fossil fuels. The project also supports Domtar’s commitment to environmental leadership.

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.