Crafting a cleaner burn In Our Next Issue: The Critical Carbon Challenge Excellent sources of fibre Read. Recycle. Renew. Taking the Weight off Mother Nature For questions or inquiries, contact your account representative. For feedback related to Unfold Online, contact: Lyn Brown VP Corporate Relations & Social Responsibility 604.247.4713 For general inquiries: freshthinking@ catalystpaper.com	When you think of renewable energy — a global issue of critical concern these days — you might typically imagine wind power or solar energy. At Catalyst, we have a unique renewable energy story: the investment we've made in biomass fuel as a significant source of energy for our manufacturing processes. An industry-leading 89% of the energy that's used in the manufacture of our paper comes from renewable resources such as biomass fuels and hydroelectric power. What is biomass? Put simply, it's the wood waste derived from the pulping process and the bark, wood shavings and sawdust left by sawmills. Biomass fuel is clean and Canada's second-largest renewable energy source. In this edition of Unfold Online, we provide an overview of how Catalyst is reducing its total energy requirements, increasing use of biomass and improving production efficiency — to achieve leading environmental performance that's good for the planet and also reflects positively on our like-minded customers. Tom Crowley Senior Vice President, Sales and Marketing

	At Catalyst, ongoing investment in renewable energy is a key part of the company-wide commitment to sustainability that guides everything we do. And commitment really is the key term. Saying that 89% of the energy used to manufacture our paper comes from renewable resources is easy, but this world-class achievement is the product of years of focused effort to reduce dependence on fossil fuels and maximize energy efficiency. So how do we do it? Through "roll up the sleeves" process optimization and energy conservation initiatives. We've invested more than $240 million over the past decade in advanced boiler technology to maximize our use of biomass fuel at all of our mills. We've also reduced the amount of electricity we purchase by 45% by shutting down inefficient equipment, making process improvements, upgrading equipment and increasing our own generation of electrical power. In fact, our self-generated power has been EcoLogo-certified as green power under a program offered by the Canadian government. Moving to cleaner, green energy In all aspects of our manufacturing, Catalyst is embracing renewable biomass energy helping reduce greenhouse gas emissions and save operating costs. Starting back in the early 1990s, our mills switched their reliance from bunker oil to clean-burning natural gas. Then, over the last 15 years, we steadily reduced consumption of that fuel in favor of clean-burning, economic biomass sources. Increasing our steam generation from biomass helped Catalyst reduce demand on the power grid. Since British Columbia's imported power comes from fossil fuel sources, our action helps our power utilities manage capacity and avoid carbon emissions that come with imports. Overall, Catalyst has cut the use of fossil fuels by an astounding 66% since 1990 and by 39% since 2001 — the equivalent of 580,000 barrels of oil annually (see chart). Doing more with less With the lion's share of fuel-switching benefits achieved, our focus at Catalyst has turned to process efficiency. We are the biggest single customer of British Columbia's electrical utility, BC Hydro, and a willing partner in the utility's Power Watchers initiative, a program that delivers energy savings through employee-led process refinements across our mills and includes rate incentives for conservation. Success at our industrial sites has led to expansion of this initiative to the communities where our mills are located. We're proud to have played an integral part in raising power conservation awareness among the general public. And the Power Watchers environmental payoff? Because the electricity Catalyst conserved (enough to supply 10,000 homes for a year) would have been purchased from out-of-province fossil sources, our reduction prevented the emission of approximately 100,000 tonnes of greenhouse gases. A cool local approach with globally relevant results. Finding value in waste Catalyst is also making inventive use of landfill waste to generate energy for our Paper Recycling Division. The facility is located near a golf course that was built atop an old landfill. As the landfill's organic matter decomposes, it produces methane gas that we collect, filter and mix with small amounts of natural gas to power our recycling facility. Since methane is a greenhouse gas that is 21 times as harmful as carbon dioxide, burning it as a renewable fuel also helps to fight climate change. What does renewable energy have to do with choosing paper? Never before has the fossil fuels/renewable energy issue been higher on public and policymaking agendas. More than ever, people are judging businesses not only on their products, but also by the processes and suppliers that bring those products to market. Making choices that keep social trends in mind says something big about your brand — and it serves as a great example of how environmentally aware businesses are working up and down their supply chains to address the rising expectations of today's consumers. For more information on Catalyst's renewable energy platform and how it contributes to the products we make, contact a Catalyst sales representative:           In Canada - 604-247-4400           In the U.S. - 206-838-2070 In the next issue: The critical carbon challenge Find out more about Catalyst Paper and our lighter footprint.