MONTREAL, Jan. 6 /CNW Telbec/ - Domtar Corporation (NYSE/TSX: UFS) today announced that it will proceed with three projects to improve energy conservation at its Kamloops, British Columbia, pulp mill. The capital investment of CDN$17.3 million will be entirely funded by credits received from the Government of Canada's Pulp and Paper Green Transformation Program.

"We welcome and appreciate the support we have received from Natural Resources Canada under this program," said Eric Ashby, Vice-President and General Manager of the Domtar Kamloops Mill. "This is the second major capital improvement in our mill announced in the last twelve months and we look forward to further improving the energy efficiency of our operations."

It is expected that these new energy conservation projects will come on-line in the third quarter of 2011.

Domtar was allocated a total of CDN$143 million dollars for investments aimed at improving energy efficiency and environmental performance under the Pulp and Paper Green Transformation Program. Domtar owns and operates a total of four pulp and paper mills in Canada, all eligible under this program.