SFK Pulp is proudly increasing its green energy output

LONGUEUIL, QC, Dec. 18 /CNW Telbec/ - By winning the tender call issued by Hydro-Québec for the purchase of power co-generated by biomass, SFK Pulp Fund (TSX: SFK.UN) will be increasing its green energy production capacity at the Saint-Félicien mill from 33 to 42.5 megawatts annually, or nearly 30%. Because the mill is already self-sufficient in terms of electrical power, this additional 9.5 megawatts power generation will be entirely sold to Hydro-Québec Distribution.

"This is excellent news for SFK Pulp and the entire area", expressed a delighted Pierre Gabriel Côté, President and Chief Executive Officer. "Not only will SFK Pulp add to its revenue streams, but the local economy will also benefit through the increased activity resulting from the supply of biomass."

The Hydro-Québec call for tenders for biomass power generation is a project that will meet the long-term electric power needs of its Québec clientele, as well as promote the revitalization of our ecosystem through green energy. "With our `Énergie-Québec 2012' project, we are extremely proud of our ability to meet Hydro-Québec's requirements, despite the difficult economic conditions that currently affect the entire pulp and paper sector", ended Mr. Côté.

This project is eligible for financing through the Pulp and Paper Green Transformation Program launched by the federal government last June and is subject to the execution of an agreement between SFK Pulp and Hydro-Québec as well as obtaining all required authorizations.

About SFK Pulp

SFK Pulp (TSX: SFK.UN), a leader in the production and distribution of high-quality virgin and recycled kraft pulp, operates three mills located in Saint-Félicien, Québec, Fairmont, West Virginia, and in Menominee, Michigan. The SFK Pulp workforce totals a little over 500 employees. The company's annual production capacity reaches 745,000 metric tons. The Saint-Félicien mill provides northern bleached softwood kraft pulp (product known as NBSK pulp) to various sectors of the paper industry in Canada , the United States and Europe , for use in the production of specialized products. The Fairmont and Menominee mills manufacture air-dried recycled bleached kraft pulp (product known as RBK pulp) and primarily supply manufacturers of fine uncoated paper, household paper for commercial and industrial uses, and coated paper in the United States .

%SEDAR: 00018041EF

For further information: Dany Paradis, Vice President, Change Management and Public Affairs, [phone], [email protected]