3rd Annual EBC C&D Regional Summit

January 16 2009Westborough, Ma.Chip Millick

Slide 2

SAPPI

Intergraded Pulp & Paper CompanyPaper mills on four continents

Sappi - North AmericaFour mills in the USTwo mills in Maine

– Skowhegan (Central Maine)» 1 million tons of green wood fuel per year» No C&D used

– Westbrook (Portland, Maine)» 400,000 tons of green wood fuel & C&D per year» 100,000 tons of coal per year» Generate 55 megawatts of power » Sell 44 megawatts of power

Slide 3

Westbrook C&D Opportunities

Started burning in December 2007

Approximately 51,000 tons of C&D was consumed in 2008

C&D used to displace both green wood and coalSupply concerns Cost economics

Consumption Trend Growth Trend 2009 100,000 tons of C&D2010 Increase volume dependent on boiler wear

Very pleased with the results of burning C&D

Slide 4

Westbrook C&D Trends

Market PlaceToday

– Limited supply– Demand is up – Increased price

Future – Different uses from today

» ethanol

– Use closer to generation?

QualityBetter Continues to improve Shift in thinking by the producer to “A product”

Slide 5

Westbrook C&D Issues

QualityIs King in the boiler

– Metal extraction– Non burnable– Plastic– Dust

TransportationAccessing other supplyTrailer size

Regulations Maine Qualification

– Fines

Slide 6

Westbrook C&D Conclusion

Action Items for 2009 Supply

Increase volume of C&D wood

Quality of C&D woodContinue to improve