Biomass is a clean, green, carbon-neutral energy source derived from industrial by-products such as bark, wood shavings and sawdust, and is Canada's second-largest renewable energy source. In fact, biomass represents the largest non-hydro renewable energy source - more than 6 times wind, geothermal, solar and tidal combined. Besides providing assurance of the forest industry's commitment to the sustainable management of resources, EcoLogo(M) certification of biomass cogeneration will allow FPAC members to market green power and/or "tags", confirming the green manner in which the energy was produced, to third parties.

The pulp and paper sector currently meets 55% of its energy demands with biomass and is now the largest industrial source of cogeneration or combined heat and power capacity in Canada. More than 50 plants across Canada use cogeneration techniques to create process steam and power for their operations - with several more mills in the final stages of planning new installations. With continued investment and advances worldwide in biomass energy research, an energy self-sufficient pulp and paper industry is not inconceivable in the future.

"The forest products industry is a world leader with respect to biomass and renewable energy. Today the industry has over 1600 megawatts of electricity generation capacity or roughly the output of 3 nuclear reactors," said Avrim Lazar, FPAC President and CEO. "We believe EcoLogo(M) certification to be a unique opportunity for FPAC members to further advance their leadership efforts in the area of renewable low-impact electricity generation and use."

"From 1990 to 2000, this industry quietly went about reducing absolute greenhouse gas emissions by 22 percent while increasing production by the same amount - surpassing its Kyoto targets by more than three times," continued Lazar. "But we're not stopping there. The forest industry is the first and only industry to date to sign a Memorandum of Understanding with Environment Canada that commits it to a further 15% reduction in greenhouse gas emissions, the equivalent to taking 300,000 cars off of the road by 2010. We're taking our responsibility for sustainable management of our forests and the environment very seriously."

FPAC is working with TerraChoice Environmental Marketing to initiate Environment Canada's Environmental Choice(M) Program (EcoLogo(M)) certification process for all biomass cogeneration sites operated by FPAC member companies who express interest. The sites would be certified under the "Electricity - Renewable Low Impact" criteria. FPAC estimates that its members will apply for certification of approximately 850 MW of biomass-fired cogeneration capacity.

Since 1999, the Environmental Choice(M) Program has developed criteria and certified companies in the renewable green power sector in North America. An EcoLogo(M) is only granted to those generation sites that use water, solar, biogas, biomass or wind, and have superior environmental performance as prescribed by the criteria document CCD-003. To date, the Program has certified over 200 facilities in Canada and the United States in all five of the above mentioned resource category groups. FPAC expects the member mill certification process to be completed by the end of April 2005.

FPAC is the voice of Canada's wood, pulp and paper producers nationally and internationally in government, trade and environmental affairs. Canada's forest industry represents 3% of Canada's GDP and exports $40 billion of wood, pulp and paper annually. The industry is one of the Canada's largest employers, operating in over 1200 Canadian communities and providing over 900,000 direct and indirect jobs across the country.

Forest Products Association of Canada, (613) 563-1441 ext: 323, ideschenes(at)fpac.ca/ ST: OntarioSU: