HAMILTON, Ohio — SMART Papers broke ground on a $30 million co-generation facility at its manufacturing plant in a move will put the papermaker on the path of using 100 percent renewable energy to power the operations of this plant located northwest of Cincinnati.

The co-generation facility, to be completed next spring, will transition to 100 percent cellulosic biomass fuel, which will come primarily from yard waste, as well as industrial wood and fiber waste. By late 2009, all products manufactured at the facility will be made using renewable energy.

"This move to carbon-neutral production is the centerpiece of our environmental and energy strategies. It enables us to have a future that is completely independent of volatile energy markets," said SMART Papers President and COO. "We will reduce production costs, make carbon-neutral papers and greatly reduce our greenhouse gas emissions. We will also be a positive contributor to the green power needs of Ohio and the Midwest."

The project consists of four turbines, two condensers, cooling tower and auxiliary equipment that will generate electricity and steam to power the paper mill. SMART Papers expects to begin selling excess power from the 40-megawatt project to the state’s grid by late 2010. The project also is expected to open another revenue stream for the company in the form of carbon credits that will be bought and sold on the open market.

The majority of SMART Papers brands are certified by the Forest Stewardship Council, the company said. The Hamilton manufacturing facility also is a zero process waste discharge plant.