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sold to the grid.

State of the art boilers, a first of their kind for Ontario, along with a baghouse and/or electostatic precipitators, will improve air emissions and allow the mill to meet or exceed Ontario's new air emission standards that go into effect in 2013, says the company.

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The market will dictate when two other small paper machines, with about 100,000 tonnes of capacity combined, and staffed by more than 100 workers, will be brought back on line.

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Machine No. 5, with 144,000 tonnes of capacity, has been shut down since March, while the two smaller machines have been out of service since December 2009.

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St. Marys has negotiated a commitment for up to 400,000 tonnes of biomass annually from the Algoma and North Shore Crown Forests for the life of the contract.

The two parties have been negotiating on the agreement for about 14 months, since August 2009, and St. Marys is contracted to supply 30 MW of energy to the provincial energy grid by early 2014.

months as well as implementation of the new business strategy that includes entry into the ever expanding bio forest economy.

About 170 workers are expected to be recalled in the coming weeks.

The mill's half century old boiler system currently supplies steam, but not electricity, and it will be eventually decommissioned.

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"Conversion of raw wood fibre into usable high value products requires energy, and this new plant is an essential step in the transition (of St. Marys) business into the bio economy," stated Bunnell, a pulp and paper industry veteran brought aboard over the summer to assist in reorganization.

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New management has argued that cogeneration is essential to St Marys' long term sustainability ever since acquiring the bankrupt mill more than three years ago, in June 2007.

The plant will be fueled by 500 tonnes of dry biomass daily, primarily bark and wood waste, about twice its current boiler consumption.

The cogeneration plant, valued at $175 million, is a key component to a new business plan that will steer the more than 100 year old mill away from being a single product mill into one taking advantage of paper, green energy and bio economy opportunities.

Meanwhile, about 30 mill workers have been recalled in anticipation Puma Basket White Gum

But the power purchase agreement, ensuring a decade of power purchases at specific, unspecified, prices "will bring lending institutions to the table," said Orazietti.

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of next month's limited relaunch of the mill and the first of three boilers is expected to be fired up in about a week.

The gradual startup will begin early next month with paper machine No. 5, a machine capable of supplying more than half the mill's annual production capacity, and a machine which could put more than half the mill's 300 employees back on the job.

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Construction will begin on the cogeneration plant, with a capital budget of $135 million, plus Puma Basket Red Leather an additional $40 million for integration and soft costs, as soon as financing is secured.

A second significant piece to St. Marys Paper Corp. diversification has fallen into place.

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The agreement is a substantially reworked submission to the one rejected by the OPA over a year ago and provides "maximum power at an acceptable cost to taxpayers," said the MPP.

´╗┐Mary's secures power purchase contract

The company has previously stated Queen's Park would commit a maximum $50 million in loans and grants towards the project but Orazietti wasn't attaching any specific dollar figures Tuesday other than to say "discussions continue on how we (the province) can assist."

Five years ago, in 2005, the province made more than $1 billion available through the Forest Sector Initiatives Fund to assist companies in updating equipment and improve energy efficiencies.

Gord Acton, president of St. Marys Paper, says the proposed plant going up adjacent to current operations, is costlier because of the fuel handling component necessary to deliver biomass to the boilers Essar Algoma's byproduct delivery system is simpler.

Less than two weeks ago, Northern Development, Mines and Forestry, announced a nearly $9 million repayable provincial government loan for the mill.

"St. Marys is now in a position to step into the 21st century, while looking confidently toward the future," said Dennis Bunnell, St. Marys CEO and chair of its board of directors.

Heat generated from cogeneration will be used in the mill's industrial processes while enough electricity should be generated to make the mill self sufficient unused electricity will be Puma Creepers Black Men

Financing has yet to be finalized for either the relaunch or cogeneration plant and talks remain ongoing with mainly private sector investors, says Bunnell.

With the purchase agreement, the mill is a step closer to accomplishing a primary cornerstone of its new business plan by expanding into green, renewable, forestry related businesses, stated the company in a release.

As many as 400 workers will be hired for the two year construction and, upon completion, the plant will need a 30 member workforce and 125 outside jobs to collect and deliver biomass to feed the plant's boilers.

The loan will assist in the company's relaunch its paper machines have been off line for about nine Puma Fenty Creepers Red

Essar Steel Algoma went operational on a cogeneration facility producing more than twice the power at $35 million less in overall cost when its 70 MW plant, fueled primarily by waste byproduct gases, went on line in the summer of 2009.

Tuesday, Sault Ste. Marie MPP David Orazietti announced that St.

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