Through a process implemented by Intersan, a subsidiary of Canadian Waste, gas produced by decomposing waste - landfill gas - will be recovered on-site. Gaz Métro (GZM.UN - TSX), Québec's leading natural gas distributor, will provide the distribution of the gas, through underground pipelines linking Intersan's Sainte-Sophie waste disposal site to Cascades' (CAS - TSX) manufacturing plant located some 13 kilometres away.

Conditional on the approval of the Régie de l'énergie du Québec, the initiative should allow Cascades to meet a large part of its Saint-Jérôme plant energy requirements for the next 10 years. "While offering the advantage of lowering our production costs, this unique project also translates into enormous environmental gains," explained Denis Jean, Cascades Fine Paper Division Inc's President and CEO.

Since 2001, the bioreactor technology used at Intersan's Sainte-Sophie facility provides closed-circuit leachate management. Re-circulated through waste materials, leachate speeds up decomposition and leads to the production of landfill gas. Gas generated at the Sainte-Sophie facility is recovered to reduce greenhouse gas emission and soon, rather than being burned, will be used to power the Cascades plant.

"Our site is a genuine gas deposit that offers a useful, clean and affordable source of energy. Intersan is particularly proud to operate a facility that will actively help produce green energy and contribute to the success of a major local company," added Intersan Vice President, Hubert Bourque.

Cascades will invest $2 million in necessary work to convert its plant. On the basis of forecasted savings, the company plans a short return on its investment. The supply from Intersan's current facility should begin before the end of 2004. "Using landfill gas will come gradually. At full production, 36 million cubic metres are expected to be available to power our operations," said Mr. Jean.

Landfill gas' energy potential thus provides Gaz Métro with new prospects. Long-time association with research into its calorific and environmental potential, the utility brings sound industry knowledge and a unique expertise. "Well within our core business of distributing gas throughout Québec, our involvement in this project is an assurance of efficiency, reliability and safety," explained Gaz Métro Vice President, Sophie Brochu. "Landfill gas conversion is a large step towards sustainable development. Gaz Métro is proud to be associated with this project and is actively developing others."

"Through this experience, Intersan, Gaz Métro and Cascades will demonstrate the energy potential and environmental advantages of landfill gas conversion. This project proves our shared objective of innovating and showing the way towards a greater use of alternative resources. At every level, this undertaking promotes long-term sustainable development," concluded Mr. Jean.