PRESS RELEASE

Vernon, BC - Tolko Industries Ltd. recently received a Canadian Industry Program for Energy Conservation (CIPEC) Leadership Award for its energy conservation efforts as demonstrated through the gasification project at Heffley Creek Division.

Tolko was among ten organizations from across Canada to be recognized by CIPEC for their significant and innovative contributions to energy efficiency. Administered through Natural Resources Canada, CIPEC is a partnership between industry and the federal government to promote the efficient use of energy.

“Tolko has demonstrated the kind of commitment to energy efficiency that is truly a model for Canada’s industrial sector,” said Mr. David Anderson, Parliamentary Secretary to the Minister of Natural Resources, Gary Lunn. “I thank you for your role in helping Canadians use less and live better.”

Gasification technology has been around for many years but had not been used in an industrial application to provide heat. In 2005, Tolko hired Nexterra Energy to design and build a gasification system. The gasification process converts wood waste into synthesis gas, which is used as a fuel to replace natural gas at the Heffley Creek plywood mill.

“This project has two goals,” said Michael Towers, Manager, Tolko Energy Supply and Systems. “It reduces energy costs and emissions.” In May 2006, the gasification energy system was brought on line, displacing an estimated $1.5 million of natural gas annually and cutting greenhouse gas emissions by 12,000 tonnes.

“We’re very pleased with this project and to be recognized for our leadership in implementing a novel energy solution,” said Towers.

Tolko Industries Ltd. is a private, Canadian-owned forest products company based in Vernon, British Columbia with over 4,500 employees. Tolko is a major producer and marketer of lumber, veneer, plywood, oriented strand board, and kraft papers, with manufacturing operations across Western Canada. The Company’s Woodlands operations have received third-party certification of their sustainable forest management systems.

For further information:

Michael Towers
Manager, Tolko Energy Supply & Systems
250.545.4411
E-mail

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